If you learn that something is not right in work, you will usually do something to make it right. Or some of you may not even choose to continue that work. That is why people chose their professions according to their taste and safety issue in them. Yes, money is involved in here too; but, we are not here to talk about that. We are here to talk about the negative things in the trading business. The most important and most common ones are going to be mentioned in this article to notify you. Just read carefully and learn how those mistakes can affect our trading business. If you go to a trading session after this article, make changes to your trading process.
Table of Contents
Over-trading can ruin your career
It is true that overtrading can single-handedly ruin your whole career. Because there will nothing to be called your career. If a trader continues to make mistake like this one, that career you will be looking will end even before it’s begun. To make things clear, over-trading is a thing when you trade too frequent. Even when you are following a low-frequency trading method like day trading it can be possibly happening. Because some traders think that if they stay with a simple strategy and trade more frequently, the chances of losing reduces. So, there will be more profits for those traders, right? Wrong, the outcomes will be worse than you can imagine. You will be losing trades too much than following a decent trading frequency. Because you are sticking with the same strategy and placing trades without observing and making the positions carefully.
Trading with high leverage
Leverage trading is extremely dangerous for the inexperienced traders. In fact, professional Aussie mentors always suggest to starting CFD trading with a low leverage trading account. Being new to this industry, it’s very hard to control your emotions. After losing a few trades, it’s very natural to increase the risk to recover the loss. If you open a low leverage trading account with Saxo, you don’t have to worry about such issues. You won’t be able to execute a trade with extreme risk which will eventually save your investment. Try to find a professional broker like Saxo, who offers a different level of leverage for retail traders.
Risking too much is a nonsense
The context is just like the title of this segment. If you are risking too much in trades, there is foolishness all over your mind. You might not be planning for your trades at all. Just like gambling, you are putting too many risks into trades thinking about more profits from them. But, without any good strategic approach, there are not good trades. So, the chances of winning trades are also not there. Even when you follow a good trading plan, the trade may turn into a losing one after closing. That doesn’t make you have to gamble. The best way to trade properly is following a diverse trading plan. It will even contain your money management plans. Your trading capital also has to be kept as safe as possible.
You are not being regular
Even without good plans and strategies, you may not get good in this business. Because your presence in front of your trading setup may not be regular. Many traders fall for this problem by not making any good trading routine. And they don’t get chances to commit to their business. Thus, there remains some absence in the participation. You don’t have to come to this business every single day. Just concentrate on when you can make time for trading. Make schedule based on those free days of the week. Then a trading routine will be automatically made. After making one, commit to yourself about following the routine properly. Then it should be easy for a trader to get used to the trading process as he or she is doing the same thing over and over again.