The biggest trading mistakes you could make

Despite all the books, seminars and videos that are at their disposal, newbie traders keep making the same mistakes and that keeps them from taking their accounts to the next level.

One of the biggest is not to collect your small loss. Instead of that, they let their ego in control of things, and refuse to admit that they are wrong. Due to this fact, the small loss becomes an emotional and financial catastrophe.

Because of that, one of the most important rules in the stock market is to swiftly collect your losses, which means some times missing on the big moves. However, by doing so you limit your account to a bigger loss.

Trading without a clear trading strategy is another huge mistake. Markets are really competitive, and there are a lot of professional participants ready to take your money. Investors and traders need to put the odds in their favor. The first thing that needs to be done is for one to find a strategy, from which positive results must be anticipated.

The most important thing here is patience. This is the key ingredient to making a fortune. It could be really difficult to stand idle with so many market moves, but sometimes doing nothing is the best decision made. With lots of patience and right set up picking you can make the best decision for entering and exiting a deal.

Another key mistake for rookie traders is entering in an order with far too big volume and no stop loss placed. A lot of traders want to make money, however are not ready to put in a good work and discipline to it.

Read more:

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• The efficient market hypothesis – reality or outdated
• Investor Strategy for Gold Trading
• Differences Between Stocks and Bonds