Trading isn’t a shortcut to wealth. There are inherent risks, which can be managed, with careful consideration. While many people have made some great returns on trades, there are some who have made some epic mistakes in the process. There are fortunately ways to learn from others in order to make better decisions.
Daniel is a novice looking to spread his wings by gaining more experience as a trader. He wants to find ways of doing this by getting advice from experts. Part of his journey is about learning from others.
You must trade virtual money first, by only using platforms that are trusted and credible. This gives you a head-start in terms of gaining practical experience.
Even though there is quite a lot of information available, there are some common trading mistakes which people continue to make.
A lack of a proper plan
This should ideally include ways for waiting for definitive trends to develop. Avoid deviating.
No discipline and switching trade strategies often
This is one of the most common trading mistakes. A lack of trust in the strategy you’ve set for yourself may lead to unnecessary losses which may have otherwise been prevented. Also ensure that plans are reviewed regularly to make sure that it produces the desired results.
Never trade based on your emotions. As a trader, the chances of you basing decisions made on impulse are lower if you stick to your initial plans.
Diversifying minimises risk taken in terms of trades made. The last thing you want to do is risk everything you have on a single trade.
Not informing yourself beforehand
Doing the necessary research prior to you starting your trading journey is vital. This informs your trading decisions.