After knowing the previous bad trading habits, let’s continue our discussion about the next five bad trading habits that you must avoid.
Rely on market trends
Many people assume that trading is just guessing the direction of the next price movement whether it will be bullish or bearish. If the price is going to be bearish, they tend to sell. if prices are going to be bullish, they tend to buy.
You have to stop being bullish when trend prices go up and bearish when trend prices go down. Successful traders are those who can determine entry and exit levels well, regardless of trends in the market. Even when prices are sideways, successful traders can use them to gain profits.
Breakout trading
Many traders do breakout trading with the aim to harvest large pips in a short time. You can do breakout trading if a number of conditions have been met. For example, when the price breaks a certain support-resistant level.
However, in sideways conditions, price movements can form choppy patterns that make it difficult for traders to determine the risks and benefits that they get. If this condition continues, you should not make an entry until the price forms a clear range.
Open a position while feeling doubt
You must avoid this bad trading habit. Every decision taken in trading will affect the final results that you get. Thus, do not ever open a position if there are still doubts or fears in your heart.
Successful traders must be able to make decisions wisely without involving trading emotions. According to My Trading Skills, you have to know how to manage your trading psychology and becoming a winning trader is vital. Every decision taken must refer to the trading strategies and plans that have been prepared previously.
Greedy trader
There are many ways to get profit from trading, but do not let you become a greedy trader. It doesn’t matter if the entry and exit levels you install are correct. However, if the position you are placing is wrong, you must be prepared to experience a loss or even a margin call.
Successful traders are those who can apply money management methods in a disciplined manner. You should trade in small but safe amounts, rather than direct large transactions, but high risk.
Trade with rigid opinions
A successful trader must be able to adjust his perception of the changing conditions in the market. Do not be too rigid with opinions regarding the chances of successful trading, or market price movements. You have to easily adapt to every situation.
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