Starting in the world of trading as an independent trader brings great benefits but also a series of adversities that if we don’t grab how to deal with these adversities and control them calmly can cost us a lot of money.
Here we bring you the top mistakes that novice traders make.
Novice Mistakes in Trading
Not Having Adequate Training
Most people who venture into stock investments tend to rush into making decisions regarding the start of operations in a real account and without first having devoted a notable duration to their training as an investor.
What we recommend, is to be prudent and not spend eagerness to open a real account. Knowledge must always be cautious and calm over the needs or desires of investing to make money fast.
Take a Simple Course and Believe that you are Already Prepared to Invest.
No Engineer, Accountant, Doctor or other professional is trained to take a basic course of one or two months. To be professionals, it is necessary to devote study time, invest in knowledge and be disciplined along the way. Take trading as a profession and give it the value it deserves.
Do not use Stop Loss
99% of the novice traders commit this serious error. Operating without Stop Loss!!!
The reason? None of them is mentally prepared to accept a loss in their account. He believes that the markets like Juno Markets will always go in his favor or he will recover after having gone against him.
Hand in hand with the previous point, a novice trader, is unable to see a horizon of possibilities since he is simply blinded and conditioned to what he expects or wants to happen.
This is linked to the emotions of each trader, the mood with which dawns and/or the frustrations that may have during your trading day. To eliminate this serious error, it is necessary to be aware that you do not manage the market, to set aside fear, to accept that there are good days and others that are not so good, to understand that the lost are part of the trading, to define an investment strategy and to respect it.
Follow the Investments of Others
It is common that when we start trading, we find more traders on our way (in social networks especially), there is need to understand that each of them is different from us, their strategies and knowledge vary based on their training.
Most Juno markets opinions seriously advice to avoid the serious mistake of trying to follow them. Therefore, the error is not in knowing them and interacting with them; the error is in copying what others do without knowing their strategies, objectives or their formation.