In every aspect of life, when you are starting to do something new you will face a few difficulties. A new trader always faces difficulties when starting their career in trading whether he is trading in a demo or live account. Difficulties faced by different traders are often common, so now we are going to talk about a few common difficulties that a new trader faces and share a few tips on how to avoid them.
Low confidence
A new trader always suffers from a lack of confidence and because of that they always feel nervous when they want to open a position. They usually consult with a trader who is more experienced than him and if he gives the confirmation then he might think about opening that position. But in this consulting period, he may miss the perfect entry, and, in some cases, he may open position in the market’s retracement time. As a result, they miss the potential outcome.
So before becoming a trader you must be work on your confidence and you can do that by back testing your strategy over and over again until you gain enough confidence in your analysis. So, take your time back-testing your strategy during your demo trading period, so that you do not need experts’ advice when you are thinking about opening a position. Study the commodity CFDs so that you can take better decisions and lead a better life in the UK. Get more info about the professional environment before you become a fulltime trader.
Always searching for information
In today’s world gathering knowledge about something is not a hard task but if you fall into a circle of “search of information” that is going to be harmful to your trading career. If this happens and you find out your trading strategy is not perfect, then you may end up finding the best one. But when you find a better strategy it may calm you for a short period. Hunger for knowledge is good, but if you always trying to gather knowledge to modify your strategy over and over again it may harm your trading career.
Repeating the same mistakes
Making mistakes is not bad if you learn from your mistakes but if you continue to make those mistakes again and again you might not be successful in any aspects of life. A new trader will make mistakes and it is natural but if he continues to make those mistakes then it will be harmful to his trading career. So, what I want to say here is not to repeat your mistake and to do so I suggest you maintain a trading journal. Note all the reasons behind the opening position after finishing your trading day. Then find out the reason behind your losing trades and work on those reasons. Writing down your mistake helps you to remember them very easily.
Making improper action
Sometimes new traders as well as experienced traders take improper decisions when they see a trade is not behaving according to his plan. Often, they exit the market too early, do not lock into profit, don’t use any stop loss and take profit level or move their positions, etc. As a result, they do not get potential outcomes from there trade. These mistakes can be avoided by maintaining a trading journal and learn from your experience. You can also try meditation because will calm you and you can decide without any stress.
High expectancy
Money flies in a trading business you just have to be smart enough to get hands-on that money. Most of the new traders join this market because of this reason. They want to be rich as fast as he can and as a result, they do not study enough and just go through a few pages on the internet and start trading. On the other hand, let’s think that you have studied enough and now you are thinking of making a huge income from the first day of your trading career then you are making a huge mistake.
Never be greedy in this market because it will lead you to blow your account no matter how big your trading balance is. So always keep your expectancy level realistic so that you can be happy with what you earn. So, we hope this article will help you have a smooth trading experience.