BUSINESS
B i g g e s t Tr a d i n g M i s t a k e s
LegacyFX Introduction
MADE BY BEGINNERS
BIGGEST TRADING MISTAKES MADE BY BEGINNERS All traders sometimes make mistakes and there are some that are unavoidable, as there is no such thing as a sure thing in trading. However, there are certain mistakes that many new traders make that more experienced professionals know to avoid.
Abandoning Strategy Good traders have a well thought out strategy in place before beginning trading. Beginners are more likely to make the mistake of abandoning their strategy to chase a big profit or try to cancel out a big loss. This is almost always a mistake in the long-term.
Chasing Losses People who chase losses have crossed the line from trading into gambling. When a trade or series of trades are not going well, throwing more money at them will not fix the problem. Knowing when to exit trades is half the battle.
Not Executing StopLoss Orders A stop-loss order automatically exits a losing trade when it reaches a predetermined level of loss, preventing the trader from losing more than they can afford. Forgetting to execute stop-loss orders can result in bigger losses than the trader can handle.
Another mistake is emotional trading – you can learn more about what this is and how to avoid it by visiting the blog of LegacyFX.