Mistakes at beginners level

Beginner Questions
1

If your to advice a beginner,what advice who you give that person.
What mistakes did you learn from

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2

It it tempting to infer from a streak of winning trades that you discovered a Holy Grail, however as it often happens there may be no causal relationship between your wins and ability of your trading system to predict price movements. In a coin toss game consecutive tosses can yield a streak of heads and tails, and the more you play the game the higher probability of this event. So don’t let probabilities trick you.

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3

Revenge trading killed me at one point. So now I have come to realize that losing is inevitable. When there is a loss, relax and continue with your trading strategy and risk management in mind. Do not try to make that money back in a rush

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4

Don’t gamble with money you can’t afford to loose

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5

Always have a plan for your trades. I’ve been in many losing trades simply because I entered without thinking. It looked like a good trade setup but I didn’t plan ahead if x y z happened. So when those things did happen, I had no idea what to do and would typically hold on to losing trades instead. Bad all around! :sob:

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6

Mistakes tend to be more at the beginner level. There are many mistakes but you have to learn from the mistakes and move forward in trading.

7

You’ll hear it over and over, but you need a trading plan.

It’s not a simple thing to create for a beginner, as it encompasses many things (position sizing, risk management, entry/exit strategy, etc) that are important to being success in the long term.

Work on developing that plan first. You can definitely demo trade along the way, but a clear plan is a must.

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8

I think even many beginners learn to accept losses in time

What I find is much harder is overcoming over trading, which comes in many forms.

The issue with overtrading, is that each time you do it you convince yourself you are justified doing it

But it’s your own inner voice playing tricks on you

There are many demons you have to overcome on your way to being a successful trader - but my overall advice is to work on yourself first.

The moment you no longer need to chase money because of a lack of self worth, when you are content with being who you are, when you have enough interesting pursuits elsewhere in your life then your trading ability will naturally improve.

Don’t be fooled by the well meaning but misguided advice of having a trading plan, back testing, learn everything about trendlines, or TA, controlling the emotions blah blah blah.

Without a proper plan to master your very self, all trendline techniques, strategies, or money management systems will be nothing more than a band aid.

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9

  • Do not overtrade

  • Do not overleverage

  • Stick to 1-2 pairs at most

  • Wait for confirmation before entry (no FOMO)

  • Stick to 2-3 trades a day

  • Manage your risk rather than chase profits

  • Follow your trading plan (If you don’t have 1, make 1)

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10

For a beginner, mistakes are more often than not a normal process. It should be understood that in this case, the trader really has more chances to learn the rules that he violated and, as a result, received losses.

11

The most valuable advice would be not to give up.
I know that this sounds too plain, but it is really essential thing in trading. First months are unbearable because they are full of losses and depression. During this period of time there is a strong desire to give up and go back to the ‘normal’ life. Benefits will come when you reach enough expertise. The more you learn and practise, the closer you are to the profts. So, be optimistic, don’t look at the statistics of 90% of losers in forex and believe in yourself.

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12

5 Common Forex Trading Mistakes:

Not Doing Your Homework. Currency pairs are closely linked to national economies and are affected by many factors.

Risking More than You Can Afford. One common mistake new traders make is misunderstanding how leverage works.

Trading without a Net.

Overreacting.

Trading from Scratch.

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13

“Invest your time before investing money”. This is the first advice I want to give any novice trader. Traders get into live trading way to early than they should. This mistakes lead to them to make huge loss in terms of money as well as confidence afterwards.

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14
What are the common mistakes that beginner traders make during live trading, and how can I avoid those mistakes?
15

Forget about making money. It will make you do stupid things and lose anything you risk. Focus on trading as a process and long term you can start thinking about money again.

16

Revenge trading ain’t sweet that you think it is.

17

Focus first on making successful trades .
Focusing on the money only leads to trading out of fear and greed .
Not staying on demo long enough is a big issue I believe

18

Don’t over invest, emotionally it will ruin you

19

Most new traders lose heavily and quickly. Those with the greatest energy and determination put in some more capital and then embark on serious research and learning. they want to know more and more about how the markets work, how brokers work, about technical indicators, about chart patterns and candlestick patterns. As if knowing more will help them.

In fact, they already condemned themselves to failure by making two assumptions before they even started trading. These are -
You can only make money by -

  1. trading off reversal levels
  2. day-trading
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20

First you need to get to the truth.

First question that you should ask yourself.

Who moves this market?
Smart money, market maker, the big players, institutional traders, whatever you want to call them, its people with very deep pockets.

How they move the price?
They accumulate positions, they plan to go in a direction and they build positions in that direction.

How much time do they take do build those positions?
Well weeks, maybe months. Most of the time months, (deep pockets) (big accumulation) :joy:

So they move the market, they pick the direction and they take their time to do so.

They are in charge of the price movement, not you, and if you know how they operate you have a idea on what the rules are.

If smart money told a scalper, price will go up, he would end up losing a bunch of money before price would go up, a daytrader the same thing, even if they knew with 100% certain that price would go up they would lose, why? Because they didnt play by the rules of the game, smart money doesnt give a ■■■■ about scalping or daytrading, all they care is to accumulate they’re positions.
Your job is to try and figure out what they are planning, that should be the first thing you do when you look at a chart, if you are only focused in scalping and daytrading you will never understand what’s going on.

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