Most trader think that they have an idea of how Forex works already - but it is still essential that you get the best Forex trading education possible. This is because the market is constantly changing and trading skills can always be improved. And to learn the best, you need the best educational resources and support.
High leverage can bring profit instantly if you are able to make proper trading planning with great risk management policy , otherwise you can fall a huge loss by taking high leverage , in this market place by and large traders in particularly the newcomers fall a great loss by taking high leverage due to non-sense planning and zero risk management approach. So, before trading with high leverage we have to know how to manage risk.
When you begin as a trader, it is not wise to invest everything you have. Money management is actually crucial so that you are able to safeguard your principal amount at least and then work with profit and loss.
The biggest mistake is to forget about your mistakes. There are so many people who trade and never look back on the previous trades. They don't know the reasons for their past failures, they just keep trading and trading without gaining the most valuable experience.
The trading spreads is a big deal when choosing a broker, if want to lead a comfortable trading life with certainly we the traders have to choose the broker which always ensures lowest trading spreads which is very supportive to make profit with certainly by using any kinds of trading strategies in particularly the scalping that brings profit in a short time than any other trading strategies we have.
Of Course yes @Vaph. Most beginner traders look for creating new methods to make profits instead of analysing what went wrong in the previous method. It’s the first mistake which most newbie’s do and fail to fine tune themselves in the long run.
Even though so many traders always emphasis on acquiring good trading knowledge but I don’t. Because, according to me despite of having most powerful analyzing trade knowledge that’s not possible at all to lead a healthy trading life with certainly, as a result the broker can affects the result of our trading with certainly. So when choosing a broker we have to be more careful.
First step for beginners is learning their all concentration should remain on earning even if they are doing real trading. I will recommend micro accounts where their loss will less and learning will valuable with real trading.
I find that one of the basic mistakes of new traders is their focus only on earning money. It is better in the beginning that your focus is on learning and gaining necessary experience in order to make one profitable strategy, then on simply chasing profits.
There are lots of mistakes which one trader can face duting his/her trading activity, but the main mistakes are the neglection of risk management and money management practices. These practices are fundamental things in trading activity and every trader must comply it in case he/she wants to become successful and multiply his/her money and not lose it. Of course, the neglection of trading psychology, because plenty of things in trading diretly depend on how is your mood on the parictular trading day. Thus rookies must learn these things in order to prevent unpleasant situations.
I absolutely agree with the author of the thread. Money management is the cornerstone of trading and any kind of investing as any investment presupposes certain risks which have to be controlled. Without money management trading reminds me of betting where 'win or lose' situation takes place all the time. The essense of trading, for me, is long and steady growth of trading account which is impossible without proper management. However, I should also point out the fact that more often than not money management is damaged by the trader's emotions and psychological state. So, knowledge is important, but the ability to implement this knowledge on practice irrespectively of emotional situation is even more essential.
For me, actually, number one mistake in trading is considered to be the most spread mistake in trading activity at all. People always make this mistake when they don't comply with risk management and money management practices. They just lose everything they have and accuse brokers and trading activity of it. I suppose it's an incorrect behavior, because risk management is the fundamental thing in trading. Novices would better dedicate more time to learning risk management practices because it protects them from dumping their accounts. Of course there are some more mistakes which can be considered as common, however this is the main one.