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3 Most Common Trading Mistakes

Main Traders mistekes in forex | Reviews traders Johannes Röll Visitors: 161 ★★★★

 

 

 

 

In this video David draws our attention to some of the most frequent mistakes that traders make. From fighting the trend and opening positions with unreasonably large sums to having stop losses too close, David discusses all these scenarios and shows how they unfold on real charts.

While not following the trend and placing stop losses are more technical tasks, how much money you put in a trend is something more psychological and this money management is often something traders underestimate. If you have a large position and every small move against it makes you feel a range of negative emotions then that increases the chance of a mistake.

So after watching the video you should be able to avoid these pitfalls and become both technically and psychologically a better trader. Write in the comments if you have any questions about the three mistakes and let us know what else you’d like to see David talk about.

To get rid of the mistakes made, they need to be identified and classified. There are errors that lie on the surface and immediately catch the eye (for example, trading against the trend, removing stop losses, etc.), but there are also more complex ones that can be identified by professionals (untimely adjustment of the trading system, inability to notice accumulating market changes, incorrect work with transaction statistics, and so on).

All trader's mistakes can be divided into four groups:

  1. technical errors;
  2. psychological errors;
  3. errors in the trading system;
  4. mistakes of risk and money management.

If technical errors can be seen immediately, just by looking at the history of completed transactions (by the way, psychological errors can also be easily identified on it), then the system errors lend themselves to more complex analysis. At the same time, in periods when the listed groups of errors have already become more elaborate (it will still not be possible to completely eliminate them, but to minimize them and make them uncritical is a realizable task), the trader begins to focus on the smoothness of the income he receives.

In this he is helped by risk and money management, which the trader begins to methodically work through. Moreover, the correct risk and money management begins to leave its mark on all other aspects of trading, but this is already a new round of the spiral of becoming a trader.

From each group, we will single out one or two main mistakes that almost all novice traders make. There will be seven of them in total:

 

 

 

 

Johannes Röll
Johannes Röll

Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer

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