We are all humans. Human error is the most widely spread among IronTrade traders. Very often, it leads to other mistakes. All newbie traders on IronTrade make the same mistakes again and again. In this article, we’ve tried to gather the most common errors for you to avoid. It will help you to become more efficient in trading.

 

Also, this article will be helpful for average traders because regardless of experience, all traders make mistakes. Understanding the logic behind these mistakes will help you bypass some of them and not build up a snowball effect of trading obstacles. These mistakes are part of a continuous education process. Traders need to familiarise themselves with them to avoid repeat wrongdoings. Firstly, it is essential to remember that trading implies the inevitability of losses. And the idea is to understand how to minimize them. Next, we will explain the most widely spread mistakes that led to many unsuccessful trades.

 

Mistake #1: Lack of trading plan

 

Those traders who do not think about trading plans beforehand tend to be chaotic in their approach. Trading strategies usually have guidelines and procedures for every trade. It is like a manual that you must follow. It prevents you from making irrational decisions and fears of missing out. Every trader must be devoted to his trading strategy. It is like a GPS that guides you in an unknown area. You can always try your strategy on a demo account on IronTrade to verify that it works as needed. Once comfortable with it, you can apply it to your real account.

 

Mistake #2: Time Horizons

 

This paragraph follows the previous one because the expiration time of your trades works together with the trading strategy you implement. Each trading approach depends on the expiration times that you are going to use and the time you will spend on trading. For example, if you have time, you make many short small trades every day, or you can set up longer expiration times and do just a couple of big ones.

 

 

Mistake #3: No research

 

Every trader must conduct proper research before executing any specific strategy. You should study the market, find the best time to open trades because many fundamental factors may affect the price. Every asset has its own nuances and aspects that affect it. Taking care of all of them is a must for everyone who wants to succeed in the market.

Another thing here is advisors. Do not follow any advice without proper personal investigation. This is a prevalent mistake among traders, who think that persons in media know better. On the other hand, it does not mean that these tips should not be considered. Just take your time to make your own investigation before acting based on the prediction of somebody else.

 

 

Mistake #4: Bad risk-reward ratio

 

Traders often overlook positive risk to reward ratios, resulting in poor risk management. A positive risk to reward balance such as 1:2 refers to potential profit that doubles the possible loss on the trade. You can use the Average True Range (ATR) indicator, which is available on IronTrade, to identify stop and limit levels. It indicates market volatility to find the best entry point. Having a risk to reward ratio in mind helps manage traders’ expectations.

 

 

Mistake #5: Trading based on emotions

 

Emotional trading is one of the worst manners of trading. It leads to irrational and unsuccessful trading. Those traders who often open additional trades after losses to compensate for their losses lose even more. These trades have no background and no trading plans. So, it is strictly forbidden to trade on emotions. Even if you lose, go for a walk and take some time to relax.

 

 

Mistake #6: No homework on errors

 

You can see all your trading history on IronTrade to identify possible strategic spots along with successful trades. It not only highlights errors but shows your profitable trades, which must be repeated constantly. It will enhance your understanding of the market for the future.

 

Mistake #7: Choosing a problematic broker

 

There are a lot of brokers nowadays, so it may be hard to choose from. Proper regulation and financial stability are the main things you should pay attention to when selecting your broker. For example, IronTrade is a safe and regulated broker that you can use without worries. It has never had problems with withdrawing or executing trades promptly. It has been working for more than 5 years and has proven over time.

 

 

We hope this article will help you a bit to make your trading experience fruitful. We wish you to stay safe and financially independent.