Trade12- 5 Common Trading Errors that Most Beginner Traders Make

5 Common Trading Errors that Most Beginner Traders Make

A trading career is a field of survival. One can only win it by research, experience, proper resources, and skills. Since it is already packed with professional money makers, beginner traders tend to lose a lot on their first tries. Here are a few common trading errors that beginners should avoid to secure a profitable trading career:

Trade12- Common Trading Errors

      1. Entering a trade they don’t fully understand

        The first and most basic thing that beginner traders should do is research. Before entering any kind of trade, they need to fully understand what they are putting themselves into. Unfortunately, because there is no required degree or experience to open an account in trading, there are a lot of traders who start investing their money without even understanding the meaning of spreads, leverage, volatility, margin, etc. which causes them to lose a lot of money on their first tries. Entering a trade without fully understanding these usually ends badly.

      2. Improper timing when placing trades

        Beginner traders usually forget that the market is very unpredictable, and that it always change course from time to time. Most of the time, they enter a trade thinking that the past news they’ve heard about the market is still applicable to the current trend. It is very important to be o date by monitoring the market real time and knowing when to apply opinions.

      3. Trading with a big position size

        Sometimes, new traders try trading with a big position size thinking that they can predict the market accurately. As this might be good if you end up being correct, it also opens you to the risk of losing bigger amount of money. Always remember that any trade can easily become a losing trade, so play it safe by keeping your trade size consistently small. Make sure tode only what you can afford to lose, so as not to end up having a negative account.

      4. Not following their initial trading plan

        New traders are prone to being emotionally carried away when trading. A lot of them gets too swayed that they end up not following their initial trading plan. They often skip their initial stop loss and convert their plan to a hold, hoping that later on the trade will make a snap back so they can reverse their loss and make profit from it. Although this could be possible, the probability of losing more than what you can regulate is still very high.

      5. Adding to losing trades

        Lastly, beginner traders tend to add to losing trades, resulting to a bigger amount of money at risk. They do this in hopes for a trade reversal so they can get back their loss. However, this usually causes bigger chances of unprofitable trading. It does not benefit them in any way because it mostly just lights up hope, which can be a negative influence in their decision making when they don’t plan beforehand.

        Trade12 Website

Online trading can be a profitable career if you take the right precautions. It is very easy to make money through trading, but it is also very easy to lose as well. Read here about the 5 common mistakes made during trading. To avoid making these kinds of trading errors, make sure you are partnered with a trustworthy and reliable broker. Trade12 is a well-renowned online trading broker that serves clients from all around the world. Equipped with ECN brokers and multilingual customer service representatives, they are always available to provide client satisfaction. Make sure to read Trade12 review before trusting any broker. Register an account now and enjoy a wholesome trading experience with Trade12!

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