Obviously, not learning from your mistakes is the worst one can ever make. So when things go wrong, we should back and consider where things went wrong and see what we need to do differently.
Common mistakes in trading
- Thread starter mumuy
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Obviously, not learning from your mistakes is the worst one can ever make. So when things go wrong, we should back and consider where things went wrong and see what we need to do differently.
I think emotions have got a lot more than these, it could be our mind set, and how we react to a particular trade.
Whatever we attribute it to, The ability to change one’s mindset is probably a key characteristic of successful traders.
Totally agree, it doesn't matter what human nature we've got, we have to work at eliminating that will cause us to lose severely in the market. Whether we are use to these or not.
Once a trader is able to figure out the causes of his failures, then he will be successful if he is determined to eliminate and never to repeat them.
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AntjeWagner
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yeah and that's the main reason why 95% fail in Forex trading.
it's not because of too less experience, it is not brokers fault, it is not about broker scamming you (not only). it's a human fail...
I agree. People spend ages blaiming brokers for 1 or 2 pips slippage rather than focus on the terrible trade tey too anyway that closed at the stop loss!
WE always have a reason for our lost but I think common mistake is trading without stoploss and too overconfident with trading decisions.
We must remove the emotional element as quickly as possible in trading. If you can do it before you put on a position, you have a good start.
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AntjeWagner
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well. if it is for business and earning only, yes. i would do. but becoming a roboter in life? i would not wish to become un-emotional
You need to first identify these problems before anything can be done. So the first thing is bring out the causes and see what you can do differently, but sometimes we need to realize that sometimes there is nothing we could have done.
This aspect of trading is one of the difficult, because we hardly can control our emotions as humans tend to react to unwanted events in a negative way.
We can't get rid of our emotions since we are humans and not robots. However, our emotions are controllable even though it can be hard at times. Trading successfully is all about making the right decision in the midst of emotions. It's the price we all have to pay to be successful.
Most of the time traders are punished if they go against the trend. Only at an inflection point are we rewarded. So do not try to predict trends. Instead, participate in trends that we have identified. Remember, markets don’t go straight up or down forever. Trends Change.
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AntjeWagner
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Some traders do not know the true the true performance of your investments. It’s great if some of your investments are doing really well, but that doesn’t mean that things are good overall. Your success isn’t judged on the profits made, nor is your failure based on your worst. What matters is that you know how everything is doing and that you keep them in balance by tweaking your contributions.
I agree, sometimes there's nothing we can do. However, Since we cannot personally change the ups and downs of the economy, we can change our own day-to-day behavior. We can choose to spend less on unnecessary things, which gives us more money to invest toward the future. And the key is finding a good balance.
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