5 important barriers every trader

Brian Reylar, a trader from the London Stock Exchange said, which according to him are the 5 most important obstacles that every trader must overcome if it wants to succeed in trading.

1) Pre-trading - Many traders think you that constantly have to be on the market. They feel that when you have an open position if released something. This is very close to the feeling of gambling. One thing must be made clear trade is not gambling. To be marketed wisely and only when we are fully confident in the position to be open.

2) A large profits with small bet - Most new traders believe that $ 20 can conquer the world. This is actually possible, but trust me, in most cases, are doomed. My personal opinion is that you need a large account to have the option if the position goes in the undesired direction to react.

3) vindictive trading - also known as Emotional Trading: When the trader make unprofitable deal intuitively try to return the money as quickly as possible. This is known as vindictive trading or trading without a strategy. Well prepared trading plan, however, can help you avoid this error.

If you decide to open a restaurant of what you need first? Need a business plan to make a profit. It is the same trade. Without a plan you are doomed.

4) burnout - Reward yourself. If the whole day standing in front of the monitor and watch the charts, you would have had great success, as it will be extremely tired. Anyway, if you want to grow your profit, be fresh and wary. Take a break. If you observed the market in the first two hours of the session, after to give at least an hour break for lunch and clear the mind.

5) Expectations of wealth - Some traders expect to get rich quickly and exactly this is the biggest mistake that led to the debacle. If you have unrealistic expectations, you can unlock another major error - emotional trading. Some traders with accounts from $ 5000 expect to make 10% daily return or $ 500 per day or about 2.300 to 2.400% monthly return. Does that sound realistic? Start with a daily target of 1% and allow yourself one day a week loss. Design your expectations for the year ahead. Well, now you have a realistic plan to start trading.