http://www.weekly-daily-analysis.co/2019/03/forex-trading-mistakes-10-major-reasons.html

Trading without a business plan

Some of us overlook the development of an integrated business plan before entering our real money in the market. Some also think that a good strategy is
All it takes to get started.

In fact, finding a good strategy that suits the psyche of a trader is difficult. But the integrated business plan is not limited to strategy, but extends to a good capital management system that allows the trader to reduce losses when they occur. A trader should not involve you in the event of a loss, nor should he engage in trading in order to retaliate against the market or quickly recover the loss. All these reasons accelerate the elimination of capital, and the trader must fully believe that loss is an integral part of the trading experience. But a successful trader is the one who makes gains that make his losses very low compared to his gains.

Do not maintain a static system during trading

These are serious mistakes in which both novice and professional traders are involved.

We all started out as a novice trader and passed through these stages. The novice trader should avoid such mistakes as beginners. Emerging traders jump from a strategy to another strategy if they hint at the new strategy with a gleam of profit, regardless of their first experience. The new strategies are experimenting with virtual funds (Demo Account) and not our real money no matter what temptations!

As for our professionals, we lose our grip on our strategy after achieving any gain, and do not explore our deliberative processes as well, as if the loss of gain is natural as long as we do not capitalize on the capital we started with in the first place.

Failure to adapt to the market

If there is a common denominator among the major traders in the stock markets of their diversity, you will find that they are humility. They know very well that the market is not safe for him. You can know the successful trader specifically as such!

When the market moves in our direction, we can not as human beings but feel that we own the market and that we are not invincible. We usually find another market view if we get to this stage!

The trader completely fails when he insists on his opinion out of sheer generosity - even when he sees the market giving indicators contrary to his technical analysis - and fails to adapt to the new data the market is producing due to price action. So you find that a successful trader is making different scenarios in his mind (and probably also on paper), being psychologically ready for market volatility, and preparing for trading during vacations so he does not have to make a decision without careful consideration.

Difficulty learning from mistakes

Be sure to learn by trial and error is the most cost-effective teaching tool. Every mistake we make is costing us more money. Though it is calculated for this method that its mistakes are not easily forgotten.

But with a simple calculation, you'll find it a bit better to invest your money from the beginning in learning, both from books and training courses, rather than relying on trial and error methodology that costs a lot of money. Worse, it drains your energy, your nerves and your confidence. In addition, you will learn more and in an organized academic way. In addition, the rate of learning and learning from mistakes varies from person to person.