Top 10 Mistakes Traders Make (newbie just look it).

[ritesh]

ya learning from our previous mistake is very must to keep ourself in the hunt for earning profit in money. u must work on ur mistakes and should never repeat that mistake in future

[Nabi Ahmed Gill]

Achieving success in futures trading requires avoiding numerous pitfalls as much, or more, than it does seeking out and executing winning trades. In fact, most professional traders will tell you that it's not any specific trading methodologies that make traders successful, but instead it's the overall rules to which those traders strictly adhere that keep them "in the game" long enough to achieve success.

* The following are 10 of the most prevalent mistakes that traders make in futures trading. They are listed in no particular order of importance:

1. Failure to have a trading plan in place before a trade is executed.

A trader with no specific plan of action in place upon entry into a futures trade does not know, among other things, when or where he or she will exit the trade, or about how much money may be made or lost. Traders with no pre-determined trading plan are flying by the seat of their pants, and that's usually a recipe for a "crash and burn."

2. Inadequate trading assets or improper money management.

It does not take a fortune to trade futures markets with success. Traders with less than $5,000 in their trading accounts can and do trade futures successfully. And, traders with $50,000 or more in their trading accounts can and do lose it all in a heartbeat. Part of trading successfully boils down to proper money management, and not gunning for those highly risky "home-run" type trades that involve too much trading capital at one time.

3. Expectations that is too high, too soon.

Beginning futures traders that expect to quit their "day job" and make good living trading futures in their first few years of trading are usually disappointed. You don't become a successful doctor or lawyer or business owner in the first couple of years of the practice. It takes hard work and perseverance to achieve success in any field of endeavor--and trading futures is no different. Futures trading are not the easy, "get-rich-quick" scheme that a few unsavory characters make it out to be.

4. Failure to use protective stops.

Using protective buy stops or sell stops upon entering a trade provide a trader with a good idea of about how much money he or she is risking on that particular trade, should it turn out to be a loser. Protective stops are a good money-management tool, but are not perfect. There are no perfect money-management tools in futures trading.

5. Lack of "patience" and "discipline."

While these two virtues are over-worked and very often mentioned when determining what unsuccessful trader's lack, not many will argue with their merits. Indeed. Don't trade just for the sake of trading or just because you haven't traded for a while. Let those very good trading "set-ups" come to you, and then act upon them in a prudent way. The market will do what the market wants to do--and nobody can force the market's hand.

6. Trading against the trend--or trying to pick tops and bottoms in markets.

It's human nature to want to buy low and sell high (or sell high and buy low for short-side traders). Unfortunately, that's not at all a proven mean of making profits in futures trading. Top pickers and bottom-pickers usually are trading against the trend, which is a major mistake.

7. Letting losing positions ride too long.

Most successful traders will not sit on a losing position very long at all. They'll set a tight protective stop, and if it's hit they'll take their losses (usually minimal) and then move on to the next potential trading set up. Traders, who sit on a losing trade, "hoping" that the market will soon turn around in their favor, are usually doomed.

8. "Over-trading."

Trading too many markets at one time is a mistake--especially if you are racking up losses. If trading losses are piling up, it's time to cut back on trading, even though there is the temptation to make more trades to recover the recently lost trading assets. It takes keen focus and concentration to be a successful futures trader. Having "too many irons in the fire" at one time is a mistake.

9. Failure to accept complete responsibility for your own actions.

When you have a losing trade or are in a losing streak, don't blame your broker or someone else. You are the one who is responsible for your own success or failure in trading. You make the trading decisions. If you feel you are not in firm control of your own trading, then why do you feel that way? You should make immediate changes that put you in firm control of your own trading destiny.

10. Not getting a bigger-picture perspective on a market.

One can look at a daily bar chart and get a shorter-term perspective on a market trend. But a look at the longer-term weekly or monthly chart for that same market can reveal a completely different perspective. It is prudent to examine longer-term charts, for that bigger-picture perspective, when contemplating a trade.

forex trading main main bi new aya hoon forex trading main both sa money makeing karta karta bora ho ga han is layia main na forex trading karta han is layia min na forex trading karta karta pakistani komuu both seee problem creata karta haon forrex trading main is lyia forex trading bigger picture perpective on a market one can look at a daily bar chart ko dehakna parta ha.

[rahul]

ya very true a trader must be careful while trading because also you are getting bonus from this forum , you should not waste it . because this forum is not giving you the bonus for wasting they are giving money for earning profit from trading

[ishvara]

To avoid the loss for the new dealer in foreign exchange trading. Must move beyond some of the errors that can be located. And recall errors.
1_ Do not allow the currency to trump even lose
2_ myself to feel attachment to the foreign exchange returns
3_ can bet all your money on the type or types of currencies
4_ do you think that you can not be organized and flexible at the same time
5_ that do not learn from your mistakes
6_ to listen to the advice of people who are not qualified
7_ not be eligible for the worst
8_ to neglect the management of money or offensive
9_ in the process of market speculation without study
10_ lack of focus on deals the most profit in Forex Trading

Yes we traders must have plan in forex trading and also focus on that plan. Planning is the key secret and ingredient that can help a forex trader to get the best out of their trades in forex.

[hibbah1]

thank you for such a useful threat added here i will say i have had made some of them number of times even now as well after having more than three years experience i am not sure about my trades.

[siredewe]

in forex, there is the term "beginner's luck", a condition that occurs to the novice trader, when they get big profit in a short time. Because of these conditions, then the traders will be confident even over confident. Over confident obviously not good for traders because it is not always the trader will profit.

I've been there. at the initial moment I started forex, I found myself always lucky. but at the moment I was so confident, and double my lot size, all of a sudden all such turns against me. and it always happens every time I open a new account.

[sagar]

Trading plan. I used to have a trading plan before but stop doing it or following any because I already memorized it. Trading plan is a good tool for every trader because it can help them to be strict and follow only their plans and not stray from it. It also keep you on your toes to avoid making many mistakes in your trades.

[anitagala124]

i tried to find out what mistakes i used to make in my strating trading days, first not closing my trade while i was in profit, second not setting stop loss and third using higher leverage or margin which make it difficult to sustain in bad times.

[sagar]

A trader who trade with time line and with risk management can achieve great lead ahead..while doing forex u just neeed to concentrate on trading style and other thing will be in ur favour

[zahidrock]

I think this is are common mistake for every newbies. If newbies trader can avoid this on trading then they can make profit from trading. So i think this post make more useful for newbies.