As a newcomer, you can make several mistakes. This is common because the trading market is unknown to you. When you repeat your mistakes, it creates problems. It would help if you learned from your mistakes. Try to control your emotions. Make a list of your trades, and try to find out the reason behind your failure. Make sure that you never repeat these. Some errors are made by every fresher. They are discussed here.
Using too Much Margin
Many traders in Singapore lend money from their brokers for trading. Before using margin, make sure that you know how the margin works. This allows you to make profitable trades as well as a great loss. So, be aware of it. Sometimes, new traders use margin and cannot able to execute their plan properly. As a consequence, they leave the market by bearing the bag of a large debt. So, if you use margin excessively, you might face difficulties…
Not Having a Plan
Professional traders always act according to their plans. They analyze the market properly, then set their goals. To fulfill their goal, they make a plan. The plan should include stop-loss, take profit, money management issues, time frame, etc. Sometimes, amateur traders do not follow their strategy properly. They cannot be able to believe in themselves. If you cannot believe yourself, nobody will believe you. When you have made a plan, try to maintain your discipline. Without a plan, do not execute your trade in the problem. If you feel that you do not know how to make a proper plan, you can help the experts. Suppose necessary use a demo Forex trading software to develop a trading plan. But without having a precise plan, I never become a full-time trader. Take your time and try to gain more knowledge.
Taking Excessive Leverage
Some traders want to do over-trading. They think that if they trade more, they will be able to make more profits. So, they take more leverage. Leverage allows you to make more profits as well as losses. Many brokers offer the traders high leverage to attract traders. If you want moderate leverage, do not be influenced by them. Some brokers offer fixed leverage; on the other hand, some offer adjustable leverage. The market is continuously changing. So, when you take leverage, you have to understand how much leverage is appropriate for you.
Forecasting the Future Value
Some traders try to predict the price of the stock. This is a foolish thing. Remember that you cannot control the market. Price is moving continuously. Sometimes, you will see the market is uptrend; sometimes, you will see the market is in a downtrend. So, this is unpredictable. Suppose you set your stop-loss and take-profit according to your prediction. Undeniably, you can face a great loss. So, try to make decisions wisely. Control your emotions, and you will be able to make profitable trades.
Gathering Too much Information
Sometimes, new traders think that they will be executive traders if they gain more information about the market. Remember that all information is not necessary for you. If you are continuously busy collecting news from the television about trading, you will lose your opportunity. You have to spend time in the market. If you have a strong plan, try to execute it. Try to give less time to watch financial programs on TV, reading newsletters, and so on. It would help if you took the time to think about your plan. Stick to your plan
Fresher faces troubles at the beginning of their journey. If you want to be a successful trader, you have to consider these issues. If you are confused, you can trial your plan through a demo account. Practice more and more. When you learn how to increase your capital, you will be able to be a millionaire trader.