Explore the common problems of novice traders
In any profession, it would be easy for you to know about it. At least a little idea about your work and working environment helps a lot. And, when you can get to know how a professional of the same post you are joining in behaves in that position, it would be much better for you. In the case of trading business, if you can learn about a trader’s behavior after joining this profession, you can prepare yourself for that. It would become easy for any person to create a mindset against all of those problems. And make an accepting ideology of all the things that will happen to you for sure. We are going to talk about it in details.
Table of Contents
Relevancy in trading
In this business, you can be a good trader or a pro one. But you cannot be a relevant trader all the time. As the markets are not obsolete, you will experience losses even when you are an expert. That is a fact and not every time your trade outcome will be in good condition. Or the luck will not be in your favor for every trade you open. So, it is right for you to accept that your performance is not going to be the same good all through your career. Without worrying about it, think about how you can recover from your bad positioning and how can you improve your quality every time there is a bad trading season. That is far better effective for a trader that thinking about losses.
Understanding your needs
Majority of the rookie traders don’t really understand their prime objectives of Forex trading. You are not trading to make tons of money within a day. You are here to change your life and it’s a very slow process. Just like other professionals, you need to build your career in the Forex industry in a much-disciplined way. Think about the doctors and engineers in our society. They have spent more than four years to complete their graduation to get a decent job. So now expect to earn tons of money without educating yourself in the investment industry. If possible, you should spend the first year in learning the details of this market. Sadly the new traders in Australia don’t have such level of patience. They are always trying to make a big profit based on their gut feelings. Try to understand the nature of your market and your needs. Work hard and create a plan to fulfill your needs.
Biased opinions will come
Like losing trade, you will also win some. This not a losing game for anyone that stays decent in this business. If you have a good trading strategy and you make good plans that are effective for your trades, you will surely be making money. But there is a catch in this case. When you make money, your brain will think that whatever you are planning is absolutely right for this business. As you are winning trades, this confidence is getting boosted up. But, not always a single strategy will work for this business. The situation can take turn any time. And sometimes it can also come back to the condition when you were making money. That is why you will have to adapt to the market and everything related to this business. If you can do so, your trading will experience fewer losses then average.
You will be emotional
The previous segment is telling more about your decisions. But there is another thing that comes before making decisions and it is attached to your performance. That is called emotional attachment to your trading business. When you lose some trades, you get frustrated or angry with your inability of trading properly. Even when you win a trade, your brain falls into the trap of ‘dopamine’. It loses control of your thinking and makes bad decisions over your trading plans. Sometimes, you jump into trading right after a winning trade. These activities are not good for a trader’s career at all.