How to manage mistakes in trading? Some traders learn it the hard way, through losing money and repeating the same mistakes over and over again. Others prefer to be cautious and avoid unnecessary blunders if they can be prevented. Which kind of a trader are you? If you prefer learning from other people’s mistakes, this checklist is for you. We have gathered some of the most frequent mistakes that novice traders make.
1. Ignoring the big picture
If you have chosen a certain asset to trade, be it a currency pair, a stock or a cryptocurrency, it is important to see the big picture of what influences the price of this particular asset. Sure, using technical indicators is great and it may be quite accurate, however, traders that want to improve need to learn to evaluate the market as a whole. How does the price of gold correlate with the US dollar? What assets will get affected and how during the presidential election in the United States? All these questions have quite simple answers and a trader’s job is to educate themselves on the economic factors.
2. Immediately trading with real funds
Though the main goal of any trader is the outcome of trades, sometimes it means slowing down and not trading with real money, leaving time to practice first. Even when it seems that you have thought everything through and you have the ultimate trading strategy, trying it out on the Practice balance won’t hurt. It may help find some weak spots, correct any imperfections and get truly prepared for trading with real money.
3. Not setting a limit
Many novice traders approach trading without any plan. They are not sure how it works or what to expect, they just want to earn money. Not only is this approach unrealistic, but it is also harmful because a trader ends up having negative outcomes constantly. The sequence is simple: a trader finds an asset they like and starts opening a deal after deal, not collecting any useful data. When the outcome of a trade is the desired one, they are happy. When the outcome is negative, it makes them mad and they invest again.
Such a vicious cycle is not uncommon, though it is not hard to break. Setting an investment limit or a sequence restriction might be a good tool for self-control.
4. Not utilizing indicators
Technical indicators are not the ultimate secret to success, but they may be incredibly useful. Indicators help a trader to evaluate the past performance of the asset and make certain assumptions about the future movement. There is no indicator that would always give 100% accurate signals, however, it is a good aid to any trading strategy. Using a combination of compatible indicators together may help increase the chances of a correct prediction.
5. Trusting others with your deals
The last but not least important point is that many traders prefer to hire or make an agreement with someone who would trade on their behalf. Not only is it completely forbidden on the IQ Option platform (here, every trader must trade for themselves only), but it can be dangerous for such hirers. There are a lot of scammers and dishonest people out there, who will simply trick you into sending them a deposit and you may never hear from them again.
In order to truly advance in trading, one has to learn and practice on their own. It is the only way to improve and waiting for someone to do it for you is quite naive.
What trading mistakes have you made in the past? How did you overcome them? Let us know about your experience in the comments below.
To the platform
I have all of those mistakes. I am still keep trying. I realise that trading is a business, it is not a gambling.
Thank you for your time, your cooperation and stay with us! Have a great day! Best trades!
Yes. I made a lots of mistakes while trading. Every time I’m failing coz my strategies are completely failing to make me success. But now I’m realizing that I’ll learn to do more as much as I can. I need more information regarding this. Thank you
Hi iam not able to upload my personal Identity proof, 82456734
Hey hi Zameer! Can you please contact our support at support@iqoption.com as we can not check the problem here on social media.
We thank you for your cooperation.
All mistake you have mansion I have done. But thank you so much for open my eyes.
Thank you for your time, your cooperation and stay with us!
Yes. I made a lots of mistakes while trading. Every time I’m failing coz my strategies are completely failing to make me success. But now I’m realizing that I’ll learn to do more as much as I can. I need more information regarding this. Thank you
Hello Suman, our best wishes are with you.
We will keep providing more information and in case you have some questions then you can always write to us at support@iqoption.com.
I wanted to know something but for now I’ll correct my mistake little bit by bit and I’ll never fed up on this business.
Thanks for your feedback! If there is anything we can help you with, just let us know at support@iqoption.com!
How can stop the risk of my ordered trading?
Good evening, Peter!
Trading is very risky and we always tell it to our clients.
Nevertheless using technical indicators and various trading strategies may be really helpful. And of course, traders should know where to stop and never risk their whole investment.
Beginning traders can try out their skills and practise on the practice account.
I have made a lot of mistakes using emotions when I bid for highs nd lows nd I have lost R2000 trying to use account manager and it was hone forever. But with IQ I am learning my way of making money very slowly nd calmn and thank you for the news letter nd tips
Regards Meshack Yende
Hello Meshack, thank you so much for your feedback.
We try to do our best and to provide you with the right information. Let us know if you have something to add. Good day.
I didn’t stop when I should I break my own rules and lots money.
I am new to this world of trading I hope I will learn to make money as well like others who’s already experienced on trading I have already lost R600
We wish you good luck for that 🙂 Let us know, in case you have questions. You can contact us at support@iqoption.com.
Hi,
My mistake is to always get emotional when the trades that I have made is not going to the direction that I have predicted. There are a lot of times that my account blown away due to this problem.
I am not yet a successful trader but I am still trying to be one.
Even though I have lost lots of my money, I do believe that I will succeed one day.
Hello Fadhil, our best wishes are with you and we pray for your success.
You can use the practice account so that you do not loose your funds in the process of learning.
IQ Option really is an excellent platform, I’m learning with the practice account and hopefully it will give me a good profit
hello maam/Sir
Can you please specify /cite that price of gold really affect the market and current event in USA really do?.
Hello, Arlan!
Thank you for reaching out. We would like to chat with you regarding your trading experience. Could you contact us at support@iqoption.com? Thank you