All of us know the mistakes that beginners make. But what about professional traders? The majority of skilled traders may fall for a trap, even though knowledge is not free. Here are some common mistakes made by pro traders.
#1 OVERTRADING
Some traders may trade too many positions simultaneously, which exhausts the available edge collateral and reduces cushion against adverse market developments. You also risk continually exposing yourself to market risk by purchasing excessively. It’s best to focus on the opportunities you feel you have the most favorable element of and to use a trained trade system.
#2 OVERANALYZING
A large number of traders believe that more is better. Many traders spend hours sitting in front of computers, analyzing Forex news and reports. You could get bogged down in complex analysis, but forget the most important and effective options. When a trader attempts to analyze so many market variables, they can become overwhelmed and end up making silly trading mistakes.
#3 TOO MUCH INDICATORS
Technical analysis is one of the most straightforward aspects of trading. However, many traders end up complicating it by covering their charts with unnecessary indicators. It is essential to understand that trading better will not be possible if you have too many signs. They can make it difficult to find the right data, and may lead to confusion that could cause you not to make the right decision.
#4 OVERCONFIDENCE
Most traders don’t realize they are becoming presumptuous until too late. It starts as optimism and quickly turns into greed. You may feel gratified if you trade beyond your plan.
#5 NOT USING a TRADING JOURNAL
Some traders believe that trading journals are only for beginners, and that it is not sufficient to store all the information in your brain. After ten years of trading you might realize that you are making the same mistakes over and over again. There is a way to improve and you can’t afford to make the same mistakes again.
