Mistakes at beginners level

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

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.

1 Like

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

2 Likes

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

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:

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.

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.

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.

  • 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)

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.

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.