Position trading strategy is one of the easiest ways to secure the best possible trades. Being a rookie trader you might think you know the details of this market. But after trading the real market for a few months, you will become frustrated and quit trading. Trading is all about finding the best possible trades with an extreme level of precision. You might be new to this trading profession but this doesn’t mean you will become Forex millionaire without educating yourself properly. You have to rely on the simple logic of investment business to master the art of trading. Let’s learn the five big mistakes committed by the position traders.
Ignoring the long term trend
Being a position trader, you are supposed to trade with the major trend. But the rookie traders start to trade the real market with the market retracement. Eventually, they lose a big portion of their investment and become frustrated. Try to find the market in the daily time frame so that you can execute high-quality trades with an extreme level of precision. Some of you might think the daily time frame doesn’t give enough trading opportunity. But this is not all true. You have to understand the fact, the quality will always beat quantity’s a novice trader, and you need to learn about the different stages of the market trend. Never trade with the minor retracement since it will ruin your trading career.
Trading with high risk
Those who are trading the market for a long period knows the importance of money management policy. If you take a huge risk in each trade, never expect to become a Forex millionaire. Trading is all about finding the best possible trades with low-risk exposure. Google the term Aussie Forex Australia and you will understand why the majority of the retail traders are losing money. More than 90% of the Forex traders are losing money since they don’t know the proper way to control the risk exposure. Being a rookie trader, you should never risk any amount which you can’t afford to lose. Trade with a conservative trading strategy and you will become better at trading.
Ignoring the major news
Being a position trader, you must have a clear knowledge of the fundamental factors of this market. Fundamental analysis is essential to assess the strength of the market trend. Some of you might think learning to analyze the fundamental data is extremely hard. But if you learn about the high impact news, it won’t take much time to develop your trading skills. If necessary seek help from the trained traders and they will give you a proper guideline to trade this market. Trading is nothing but the most sophisticated business in the world. You can’t afford to trade the market with emotions since it will force you to over trade the market.
Lack of trade management skills
You must master the art of trade management skills to become a successful trader. By using the simple trade management technique, you can easily ride the long term market trend. Never try to trade the real market without having a precise knowledge of the market trend. Once you spot the major trend, try to use the trailing stop loss features so that you can maximize your profit. Focus on the basic rules of investment business and you slowly begin to make progress in the trading profession.
Lack of confidence
Without having strong confidence you can’t become successful at trading. As a position trader, you must trade the market with managed risk. Stop taking unnecessary risk to recover the loss. Stick to your trading rules and try to make a profit with simple actions. At times you might get confused with your trading skills but this is very normal. Take a small break and organize yourself to trade the market with confidence. Never lose your confidence as it is one of the most vital elements in position trading business.
Recent Comments