What genuinely differs an adept trader from a novice trader is the amount of trading experience they respectively possess. Believe it or not, experience matters in trading. While adept traders tend to be more calculative, here are 3 trading mistakes novice traders associate themselves with.
3 Novice Traders Mistakes:
Rarely Set a Stop Loss
Putting a stop loss in trading is essential, yet unfortunately, this is one of the trading mistakes novice traders often do. They rarely set a stop loss.
Novice traders are sometimes afraid of putting a stop loss. The reason being they believe that they need to give some time to their trade to see how it works out. Another reason is that they are afraid to make a ‘bold’ move due to brokers.
Selecting Broker Irresponsibly
Considering today’s rapid and complex development of trading, brokers are escalating in number. Due to the tight competition, numerous brokers claim to have a better offer and, truthfully, it is mouthwatering.
Being novitiate in the world of trading, novice traders tend to conduct little to minimum research pertaining to brokers. This, arguably, is totally unjustifiable.
Have Little to None Confidence
Salient as it actually is, confidence is one of the vital factors that novice traders often lack of. Though it is understandable that they might be worrisome and anxious about their first debut as a trader, a lack of confidence will indubitably backfire.
A lack of confidence is one of the fatal trading mistakes that many traders tend to underestimate. To describe their lack of confidence, there are categories to classify their slight bravado.
First and foremost, they do not trust their own judgment. While it is important to listen and observe the facts on the market, it is also crucial to place trust in their judgement. Otherwise, they will be easily influenced if there is a novel narrative going around without even considering the percentage of its facts and rumors.
