Trade and don't cry: top 6 major trader mistakes

Trade and don't cry: top 6 major trader mistakes

Trade and don't cry: top 6 major trader mistakes

What does it take to be a successful trader? In fact, there is only one thing – do not miss profitable trades. And how exactly to do this is another question, which we will discuss in our article.

The only difference between a successful trader and an ordinary trader is the size and condition of the Deposit. The algorithm for profitable trading is ridiculously simple: if you miss a trade – you lose money. There are several factors that cause profitable deals to fail. Do you want to learn more about them and stop losing your Forex Deposit due to stupid mistakes? Then this article is for you. When you know the enemy by sight, it's easier to fight them. Therefore, we have collected the most common mistakes in trading that prevent you from trading profitably.
1. Haphazard trading

Don't let the market take you by surprise. If you do not have a clear and consistent plan of action for any market situation, then you are a hostage to haphazard trading. When you have a well-thought-out guide at hand, you will not want to deviate from the rules or do anything unreasonable that will put your Deposit at risk. A trading plan is your insurance.

Let's now look at what our daily algorithm looks like for each transaction made:

1. Determine the direction of the trend (up, down, or consolidation). We do not trade against the trend, but during consolidation we work inside the sideways movement from the nearest support and resistance levels.

For example, in an uptrend, we only trade to buy from lower support levels or to break up resistance levels.
And when you consolidate is to try to work on turning from the nearest levels of support / resistance.
2. Graphic figures should be formed next to significant support/resistance levels.

For example, this is how the formation of a reversal graphic figure from a significant resistance level in the "Sniper" system looks like:

3. Determining the graphic shape of the Sniper (reversal or continuation of movement) in the direction of the trend.

Example of a u-turn figure RU3-1:
Example of a pattern for a continuation breakout (PPD):
4. the profit/loss Ratio should be at least 1 to 3. If there are obstacles to our transaction, it is better to skip an imperfect transaction than to trade for the sake of trading.

The figure shows how it is necessary to note the size of the estimated loss and profit for the graphic design of RU3 and maintain a common position:
An example of an ideal goal that does not prevent the price from moving down:
If any condition from our trading plan contradicts the General direction, we skip such a deal.

In the "Sniper" strategy classes, an entire lesson is devoted to the algorithm of actions, after which each student will be able to create their own action plan for each day.
2. Trading without using money management rules

Most novice traders have no idea what it is. What size to trade in each position, when to increase and when to decrease the transaction volume – these and many other questions are answered by money management. Do not engage in trading for the sake of trading and artificially increase its intensity-wait for the best moments, do not deviate from the basic principles of risk management, and your Deposit will not suffer.

You can't risk more than 2% of your Deposit in one trade. For example, if your Deposit is $1000, then the stop loss size should not exceed $20, and you should use the appropriate trading lot size.
3. Self-doubt

Mistake number three – lack of psychological confidence in their abilities, and therefore in their actions. As a rule, trading is always associated with emotional outbursts, so it is extremely important for us to control our emotions before each trade. The fear of opening a position can sometimes play a negative role. Regular omissions of profitable trades usually reduce the effectiveness of the trading system by several percent. To avoid this and in parallel not to sit at the monitor all day, install alerts (notifications with audio accompaniment) in your trading terminals. Let's take a quick look at how to do this:
For those who do not want to set alerts for some reason, there is also a solution-the "Sniper" indicator. Maximum». This indicator is ideal for those who do not like unnecessary manipulations in the trading terminal. Trading with this indicator becomes simple and convenient: if there is a signal, we trade, if not, we wait further.

The problem of psychology of trading in the course "Sniper" is given a separate lesson, during which the student will analyze absolutely all situations with the submission of the most relevant recommendations for controlling emotions in trading. During the training, you will learn how to maintain and use training, testing, and trading logs with a clear time division for each stage of trading.
4. Trading without stop losses

The recommendation is to always set the stop loss basis of any trading system. Many professionals do not set a stop loss due to the widening spread during the news, but they constantly monitor the situation and stop in time where it is necessary. But beginners should not take any extra risks – set stop losses as soon as you decide to enter the market or with pending orders.

Example of how to set a stop loss for a market order and a pending order:
5. Lack of patience in trading

Many traders have such a feature – to close a profitable position that has 2-10 points left before the target level. And think about how many points of profit you lose in this way, having made, for example, 500 transactions in a row? Therefore, you should not cut the profit that is embedded in your trading plan.
6. Gallop across Europe

Most traders change trading systems like gloves. You can't do that. You can combine and find something that is most useful from other strategies, but do not abandon the old ones that have been tested by time and practice. Changing trading strategies in the financial markets is a constant mistake of weak-minded traders, which especially often POPs up at times of huge drawdowns and lack of self-confidence.

Don't be afraid of the market, practice more, trade and enjoy it. Be demanding of yourself, discipline yourself and work hard - and success will not be long in coming.

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