The Biggest Mistakes That Caused Us to Lose Money

The first mistake made by those who trade in the markets and make losses is to trade in these markets without having market knowledge and adequate training. Trading is perhaps the hardest job in this world. Because not only education is not enough, you also need to have a will of steel.

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Unplanned trading!

While planning many things in our lives to the smallest detail, unfortunately, we open and close transactions without answering simple questions such as where we will enter the transaction and when we will leave. The trade entry level, stop loss point and target should be determined beforehand.

Not sticking to the trading strategy!

Profit or loss occurs because the market is constantly moving up and down. In this case, the person may panic or fear. It takes great skill to manage the position while in position. We must never deviate from our plan.

Position Size

One of the most common patients is to enter a high lot transaction compared to our balance. In this case, the risk of losing our entire balance in a short time increases with successive losses. If the person sets the correct position size, he will not easily lose his balance.

Long wait at a loss!

If we do not use a stop loss and do not trade in the right place, it is inevitable that we will face big losses. As the amount and duration of the damage increases, the person is dragged into more mistakes and mistakes lead to mistakes.

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Not being able to wait and acting impatiently in profitable trading!

One of the common mistakes is to exit a profitable trade early. If we stay true to the target by complying with the stop, we will not be faced with the possibility of missing out on the profits we will receive by exiting the trade early.

Frequent trading!

We don't have to constantly open and close trades. We must learn to wait for the right time. As soon as opportunities are gone, new opportunities will always come. The market offers very good opportunities to those who know how to be patient. Being in the process all the time is tiring for the mind. It causes you to pay a continuous transaction fee. Trading is mentally very tiring.

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Risk/Return Ratio

I do not risk 1 USD for 1 USD when trading. I have to earn at least 2 or 3 USD so that I can risk 1 USD. In this way, even if my profitable transactions are few, I will never make a loss. Enter the transactions that satisfy you with the risk-reward ratio, or you will get tired for nothing.

Buy low, Sell high

This is one of the biggest mistakes that should not be made in leveraged markets. The bottom has the bottom and the top has the top. Never bother looking for bottoms and tops. Always try to trade in the direction of the trend. Do not enter a trend reversal without seeing signs of a reversal. Remember, good money is earned with long-term trends. Try to move with the trend. Be sure to learn the classic trend continuation and trend reversal patterns and practice a lot.

If you have a sell position and the price is rising, if you continue to open a sell position instead of stopping, it will be a miracle not to blow your account. Well, in the opposite scenario, your trade continues in profit. You see, there is another bearish opportunity, you should open an additional selling transaction in the direction of the trend. By increasing your position in the right direction while in profit, you will not miss the opportunities that will arise while the price continues.

Not using trailing stops

You should know how to guarantee your profitable positions by using progressive SL as your profit increases. In this way, you will not be alone with the risk of losing your profit in extreme reverse price movements. There are many techniques involved in using a forward stop.

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If you want to be successful in Forex or stock market. You should look professionally at this trading job, which is one of the most difficult jobs. technical analysis training is 10% effective for success in this business. The remaining 90% is psychology and risk management.

Choose the right source for technical analysis training and learn this training in discipline as if you are going to take a big exam.
Practice a lot on the topics you have learned. Create your own Trading strategy and backtest it.

Choosing the right time frame is important when trading. It is impossible for a busy person to deal with hourly charts. Because he will not be able to allocate the necessary time for this. It is healthier for this person to work with daily or weekly charts. Get to know yourself.

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Follow the economic calendar.

Daily data is important, especially for those who trade hourly charts. Because you have a high chance of stopping in hard price movements. Apart from that, it is necessary to be more or less aware of the Central Bank's decisions, political and political developments.

There is no magic indicator (rsi/macd/bollingerbands), robots or formations. Only price movements are risk management and trading strategy. Beware of social media influencers selling robots or tech-analysis signals that say they earn 100%.

Disclaimer: Originally posted on my personal blog on leofinance.