What are the key mistakes a novice trader makes?

No Trading Plan.

What is novice trader?

Novice traders must not only become knowledgeable about the markets, but also about themselves. Just like any other business, to become a good trader you must focus on a solid process. Results will not come instantly.

What are the most common mistakes traders make when trading?

Traders also go short more often than conservative investors and tend toward averaging up, because the security is advancing rather than declining. This is an equally risky move that is another common mistake made by a novice trader.

Why do so many newbie forex traders fail?

If you want to know why many newbie forex traders fail, one of the most common reasons is the lack of preparation. Trading is one of the toughest professions out there. It’s extremely competitive and difficult to maintain an edge in the market even when you are well prepared.

Why do amateaur traders lose money?

They tend to trade way too big after a recent string of winners and often get caught on the wrong side of the market when they are most aggressive, which in turn leads to large losses. These amateaur trading mistakes related to position sizing should be dealt swiftly if you want to stay in the game for any reasonable amount of time.

What are the characteristics of successful and unsuccessful traders?

One of the defining characteristics of successful investors and traders is their ability to take a small loss quickly if a trade is not working out and move on to the next trade idea. Unsuccessful traders, on the other hand, can become paralyzed if a trade goes against them.