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If your goal is to become a successful trader, there are 8 mistakes that you absolutely must avoid. In this article will describes 8 serious mistakes that traders should avoid.
1. Placing too many orders, trading too many currency pairs
Every transaction carries potential risks. When trading so much, the number of risks you face is increasing. And this is a must to avoid in trading. When trading a lot, you may be addicted to trading, or you may be psychologically controlled. Whatever it is, this way of dealing causes significant losses. Gradually you will understand, for a professional trader, their purpose is not to trade many orders but to achieve quality trades.
2. Spend too much time analyzing and planning
Analysis and planning are needed. But don't let it take up too much of your time. Try to simplify, work scientifically, and balance between transactions and support for the transaction process. So you do not miss opportunities in the market.
Moreover, planning and analysis for too long make it easy for traders to develop a perfectionist habit. This makes transactions more difficult.
3. Put too much focus on low time frames
Trading at a low time frame easily leads to a fall in trading and is easily controlled by psychology leading to a loss. Should choose a larger time frame to minimize the momentum of trading, psychology will also be comfortable, the analysis of the market will be better, the market view will also be clearer.
4. Trading on demo
Many traders find the easy market to jump into real trading accounts. But the market is not so easy. New traders should practice on a demo account first because it helps new traders contact the market, have time to experience, practice knowledge, and methods. At least not repeat the basic mistakes when trading. Let's find the good open source cryptocurrency exchange to practice.
5. Trading based solely on news
A lot of traders trade news but they lose money very seriously. Because most people don't understand the impact of news on the market. It is not as simple as what you read in a book. If the market is in a volatile state, without solid skills, knowledge, and proven tactics, we should not trade in volatile times such as news.
6. Given that past profits determine the future
The market moves randomly, and every trade has a potential risk. A series of winning orders do not indicate the next and next order you will win. And a series of losing orders does not determine you will lose forever. So, do not rely on the results of the past to bear the results of the future. Focus on each transaction as you have never done before.
7. Trading in despair
If you are feeling you are worried, trading but always worried, praying for the price in the direction you want, whether you are making a profit or a loss, you should exit the order. Because this way of trading can make you act unexpectedly, or you can push yourself into a hole. This way of trading, in the long run, you will be exhausted both financially and mentally. So often rest, to ease your mind back to trading.
8. Failure to comply with transaction principles and processes
Regardless of which strategy you use, you still need to have your own analytical process, your own rules, and you need to follow it. If you do not follow or ignore one of these principles, it can become a reason for your loss.
Following the principles, process analysis is one of the ways you can minimize risks and avoid as many trading mistakes as possible.
The above are 8 basic mistakes but if we do not avoid, the losses are unpredictable, especially new traders. The reference you offline!
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