You cannot be a successful trader instantly. Many traders fail to obtain satisfactory results when entering the trading market. Moreover, their chances of losing money are very high. There are so many factors that trigger failure in trading, one of which is bad trading habits.
The traders often get caught up in bad habits when trading. As a result, they cannot get maximum profits.
Let’s check out these following bad habits that you should avoid:
Too Focused on Profit
Most novice traders focus more on profits, rather than trading methods. As a result, they tend to use complicated trading methods from various indicators, as well as using expensive software. They assume that it can bring profits consistently.
To be a successful trader, you must focus on the trading methods used. A number of successful traders on Forex apply simple trading methods to make a profit. One simple trading method is price action. It is a trading method that refers to the pattern of market price movements.
Not Calculating Losses
Forex trading is not just about making a profit, but you must also be prepared to risk loss. Unfortunately, not all traders take this into account.
If you trade without regard to losses that can occur, it is the same as gambling. The reason is, you don’t have a surefire strategy for long-term benefits. You only focus on the jackpot at the current position.
Revenge trading
According to Trading Academy, revenge trading is just one of many mental/emotional pitfalls that can derange your trading results. A trader must be able to keep his emotions stable in every condition. Don’t be too euphoric when you get a profit, and don’t be ambitious to take revenge when you lose.
Most traders want to chase back their lost profits by making one large-sized trade. This is a reckless act and has the potential to result in losing streak. A successful trader must have good trading psychology in dealing with any situation and condition.
Don’t understand of a good pair
Generally, the most widely traded currency pairs on Forex are the currency pairs with the lowest spreads and the most liquid ones. To be able to choose which currency is good for trading, it depends on your understanding of the trader.
If you want to play safely, try to trade in the most liquid currencies, that is EUR / USD, USD / JPY and GBP / USD.
Depend on other traders’ predictions
Other traders will not bear the burden of loss that you experience. Thus, don’t rely on predictions from other traders. You have to learn the analysis independently before you open a position in the trading market.
Read more: Being An Investor Or A Trader, Which One is Better?
