You can trade the market from anywhere in the world. You can use leverage and turn a small account into a big pile of money, but you must work hard. You can’t even imagine how much work you have to do just to learn to trade. People in the United Kingdom love the concept of trading but still, they are losing money because they don’t know the proper way to manage the risk. In fact, they are suffering from the common syndrome of the wannabe trader. Let’s find out more about this syndrome and what it causes inexperienced traders to do.
1. Ignoring the trading mistake
Very few people admit that they have faults in their trading strategy. They don’t want to admit their mistakes because they feel shy. But having an emotional attachment in the Forex market is not going to help. You have to admit the fact, you have faults in the trading system. Fix the faults and try to come up with a unique solution to do so. Never make the same mistake twice because it can cost you money. Follow the guidelines of the professional traders. Never feel shy about learning new things. Admit the fact that you have a lot to learn about this market. Only then will you be able to succeed as a currency trader.
2. Not having a mentor
Many people don’t like the fact they will learn trading from a senior. They think they know everything about this market. But if this were true, no one would have lost money at trading. By having a professional trader as you mentor, you can get proper guidance and scale the trade according to your will. Though it will be a complicated task to learn the details of this market at the initial stage once you start learning the details of the market, you will be able to make a decent profit without having any stress.
3. Trading with the bonus
Thousands of traders are using the low-grade broker just to get the deposit bonus. You can’t do anything unless you learn to trade with discipline. Most importantly, you need to find a good broker like Saxo. Read more about Saxo and you will understand why the professional Forex traders are always taking the trades without thinking about the bonus amount. If you ever trade with the high-end platform you will realize that these platforms can easily cost you money. But a great broker always offers these platform free of charge so that you can learn trading without having any problem.
4. Trading with emotions
Wannabe traders will always trade with emotion. They think that their gut feelings are right. They might win one or two trades but in the long run, they will always lose money. Think about the safety of your trading capital. Forget about emotions since it never helps traders. You need to find a simple way to execute high-quality trade without having any trouble. This must be done without having any emotional attachments.
5. Breaking the rules
The aggressive traders always break the rules. They think they know everything about this market. But after taking a few trades, they realize trading is not as easy as it seems. You have to follow strict rules regardless of the quality of the trade setups. If you break the rules, you will blow up the account. Write down the rules on a piece of paper so that you can take trades with discipline. If you find it hard to follow the rules of trading, you need to focus on the market dynamics. Read more books on trading phycology to improve your mental stability.
Article Submitted By Community Writer