My biggest mistake was not accepting to lose a trade. So I have been surfing from one trading system to the other for too long. Losing is part of trading, so we must deal with it. I realized that the best option for me is to use 2 or 3 simple trading systems, apply a multiple timeframe approach and a good money management like the use of a RR=1:1.5 or 1:2 and be disciplined enough to stick to the rules.
Actually, we feel free to trade on demo account but we fear to trade on live account. Decision plays a vital role and traders can’t make pure decision while trading on real account.
A serious mistake most traders make is that they only set out to learn from a losing trade.
They assume that a losing trade must contain a mistake: they assume that a winning trade has nothing to teach them.
Losses and mistakes are not the same thing.
The idea is to learn everything from one’s own experience ,preferably from a demo account.That where the problem lies with rookies “learning " theories, strategies from you tube ect when they have to find what " comfortable .”
Not that I play poker but we would all play the game different.
It’s far more important to use order flow to pin-point at what price where losing traders would close their trades or would be stopped out. Usually at a support/resistance / supply demand pivot point zone .
In other words where you can FIRST place your T/P before it. THEN you can place your S/L accordingly - and not the other way around.
RRR is just a gamble, otherwise.
What books you have read?
So far, trading on real money instead of demo! lost a 100 buck in a few minutes. Hopefully i will learn and never do this again.
My biggest trading mistake was investing an amount that exceeded what I could afford to lose. It was a foolish and risky decision, especially given my role as the sole breadwinner for my family and our reliance on paycheck-to-paycheck living. Despite being fully aware of the potential consequences of my actions, I still went ahead with the risky venture and prioritized it over my financial responsibilities.
As I have mentioned elsewhere, back in my early twenties I used to play poker for a living so, when a friend introduced me to Forex trading, I already had a good idea of how to develop an edge in the market and turn a consistent profit.
However, that wasn’t enough to stop me falling down a rabbit hole.
I started watching people on YouTube talking about the best way to make money in the foreign currency market and just assumed that they must know better than me, even though a lot of what they were saying simply didn’t make sense. I even went as far as trialling some of their strategies, even though I could see they were fundamentally flawed.
Then one day I was listening to a reasonably well-known YouTuber and the penny finally dropped.
As he sat there talking about how to grow a small account fast, I thought to myself, ‘This guy hasn’t got a clue!’ Put simply, he was chatting pure nonsense!
From that point on I decided to rely on my own education and trust my own instincts.
I’ve been trading profitably ever since.
Just for the purposes of full disclosure: I am in the process of writing a book about how to actually grow a small account fast. I am trialling some of the strategies that I intend to detail in that book with a small account challenge right here on Babypips. You can follow my progress here
Yes, that’s exactly right.
I see. But it didn’t cause you to leave trading, right?
Crying and screaming always work.
overtrading was definitely my biggest mistake when I first started trading. I was so eager to make money that I would jump into trades left and right, but it just led to losses. It took some time to realize that sometimes the best trade is no trade at all
I’m sorry to hear about your loss. Remember that mistakes happen, and it’s important to learn from them. Take a step back and evaluate your trading strategy.
also not having a trading strategy could harm too
Over trading! When I first started forex trading, I was doing too much. I would open a trade, lose money, close it, and then try again to make a profit. I did this way too many times every day, and before I knew it, I lost half of my money.
From all comments till now I can conclude one of the biggest mistakes is Overtrading.
Despite all other jobs that practice makes perfect?!
I think the biggest mistake I made was being lazy and thinking this would be easy.
When I first dipped my toe into trading a couple of years ago I thought I was smart and could just copy other people signals without learning anything. So I joined a telegram channel that promised high returns and I blow my account balance in two days. What I noticed was that they gave you buy signals, stop loss signals and take profit signals. Then they would post imagines of all the wins, however they never posted about the loses. And there was a hell of a lot more loses than wins!
So I knuckled down and did a million of courses and now realise I was an idiot to think I could make money that easy. I’m still now trading demo account until I feel I’m ready to go live again.
Right trying to copy other people’s signals without knowing the basic principles and risks is not going to work out in the long run.
It’s true that “Practice makes perfect” but you shouldn’t go overboard. It’s better to begin by practicing on demo accounts and then gradually move on to live trading with a small amount of money, instead of risking all of your life.
I agree that starting with demo accounts and gradually moving to live trading with a small amount of money is a wise approach to trading.