Nowadays, trading is becoming more popular than ever. Every year, a massive number of individuals flock to the markets, hoping to make quick money. Lots of individuals are fascinated by ambiguous commercials promising effortlessness and easy entrance to riches. Many of these ambitious traders don't succeed because each person does different and very particular mistakes while seeking for success. My long experience as a trader has proved to me that most traders usually fall victims to the same problems and faults. Here are just but some of the similar mistakes:
Lack of a Trading Strategy: Most traders require a well conceived strategy to trade the markets, and most mistakes done by them can be summarized up in this category. The absence of a healthy supportive plan means that the trader won't recognize which "events" to concentrate on, the rules and regulations to trade those events, and money management policies. Similar mistakes such as not holding stops and overtrading can be also a cause of this problem.
Lack of Confidence in his Tactics: The only case where traders will perform effectively is when they are sure about the chances of any certain approach. A trader must know that it is insufficient to learn it in seminars but he has to test it himself and try to attain a level of comfort and confidence that will let him to implement with accuracy.
Trading Under Monetary Pressures: People believe that this is an easy path to become rich, so many of them leave their current jobs because they expect to make an immediate living through trading the markets. As a trader, nothing is more damaging to your success than facing the pressure to execute.
Trading with Insufficient Capital: Usually traders with small capitals face two typical problems. First, is the fact that they are likely to hold positions that will occupy a large percentage of their accounts, which in turn might cause losses that will be more significant than they expected. Second, traders don't use stops.
Lack of Proper Technology or Too Much Reliance on Only Technology: Traders who lack the appropriate technology, either because they are afraid to use sophisticated systems or the lack of commitment to obtaining them as an essential cost of doing business, face a weakening disadvantage as they cant develop information rapidly enough, and as we all know, this is a business that deals with the quick analysis of information. On the other hand, there are traders who think that technology alone, without the proper training and method, can solve their problems. It's illogic for an aspiring trader with no technique to just depend on technology.
These are not the only mistakes that might occur but the most common ones.
Mazen Melhem
E-Money Power
www.emoneypower.com
Lack of a Trading Strategy: Most traders require a well conceived strategy to trade the markets, and most mistakes done by them can be summarized up in this category. The absence of a healthy supportive plan means that the trader won't recognize which "events" to concentrate on, the rules and regulations to trade those events, and money management policies. Similar mistakes such as not holding stops and overtrading can be also a cause of this problem.
Lack of Confidence in his Tactics: The only case where traders will perform effectively is when they are sure about the chances of any certain approach. A trader must know that it is insufficient to learn it in seminars but he has to test it himself and try to attain a level of comfort and confidence that will let him to implement with accuracy.
Trading Under Monetary Pressures: People believe that this is an easy path to become rich, so many of them leave their current jobs because they expect to make an immediate living through trading the markets. As a trader, nothing is more damaging to your success than facing the pressure to execute.
Trading with Insufficient Capital: Usually traders with small capitals face two typical problems. First, is the fact that they are likely to hold positions that will occupy a large percentage of their accounts, which in turn might cause losses that will be more significant than they expected. Second, traders don't use stops.
Lack of Proper Technology or Too Much Reliance on Only Technology: Traders who lack the appropriate technology, either because they are afraid to use sophisticated systems or the lack of commitment to obtaining them as an essential cost of doing business, face a weakening disadvantage as they cant develop information rapidly enough, and as we all know, this is a business that deals with the quick analysis of information. On the other hand, there are traders who think that technology alone, without the proper training and method, can solve their problems. It's illogic for an aspiring trader with no technique to just depend on technology.
These are not the only mistakes that might occur but the most common ones.
Mazen Melhem
E-Money Power
www.emoneypower.com