From time to time you might be wondering what professional traders ‘have’ that you do not, or what they know that you don’t. Beginning traders often choose methods of trading basing their priorities upon the wrong criteria - emotions, and in doing so, the chosen strategy could be ineffective (more damage than good). Discover how to avoid most common mistakes, and how Forex books can help to improve your skills and do disciplined and profitable trading.
Sometimes because of a ‘desperate will’ to conquer the market your mind gets clouded - you are struggling too much for making money in the market. Starting with the desperate trading mind-set is the wrong perspective which leads to more losses than profit. You can never have 100% certainty and this is why it is important to be in harmony with the market and accept that it can be random.
Lesser you feel like you ‘must’ trade, the easier you will make money. It sounds like a paradox, and it is, but it is the one you have to deal with to become successful. ‘Unforced errors’ - the stupid trades, over-trading, over-leveraging the account - may occur. Forex library is a great source of help to choose the best literature on how to control the market and not let it control you, and how to gain discipline and logic in your actions and avoid errors.
What not to do at start
It is going to take time and conscious effort to get required focus and discipline, but if you want to make profit, you have to cut the ‘unforced trading errors’ that plague most traders. Forex library is the great database of tips, tricks and advises to remember that will eventually help you to liquidate trading errors. Look below what is not recommended when you start trading.
- Do not close trades manually unless there is a reason (you are reducing the chance for profit assuming that you know what the market will do next)
- Stick to the initial plan (do not close out good trades right after entering them just because the market moves against you a bit, be patient as it is not gamble)
- No focus on rewards and profits (learn to trade properly - risk management, control of your trading account and shaping trading strategy - that is how you start making money)
- Make an effort to build up the strategy (stick to it and always go through your trading journal to track and learn from your trades)
If you have great money management skills but constantly over-trading, in a long run you will lose money. If you are discipline and make conscious decisions but risk too much of your account constantly, you will also lose money over some time. It goes along with an attitude towards trading, remember that it is not gambling and neglecting having a trading method will probably also lead to losses. And always follow the new best Forex books (which are easily accessible online) as every aspect of your trading experience needs to be in a good condition so that success is in your favor as much as possible.
By Nick James
