Whether you are an experienced trader or not, trading is not simple. Even on IronTrade, we always warn our clients that it may lead to losses. No strategy guarantee 100% success. Neither magic cure may turn a newbie into a professional overnight. People spend a lot of time and effort to become real traders, and many of them fail. In this article, we want to reveal some complexities of trading and how to avoid them.

Markets are constantly changing

They are never the same. On the contrary, they constantly evolve, and trading conditions are always different. Of course, some patterns repeat from time to time, but you can not be 100% sure that they will be the same as before. There is a wide range of factors that affect the performance of assets. And every time, these pieces of the puzzle are put together differently. International markets are complicated financial systems, hence, interacting with them.

How to deal with it? Well… Despite all the intricacies, some methods may help assess the performance of any asset. Even though the markets are constantly changing, some patterns keep repeating. They can be spotted and used in trading. Use them as signals for action! But don’t forget to double-check and confirm whether they look natural.

Human factor

Human nature is always a vital factor. You may think about it as a weakness, or vice versa, as a source of additional opportunities. But you can not deny it. Still, humans open and close deals, make trading robots and sell or buy from each other.

So, how to deal with the human factor when trading? There are several methods to do it. Firstly, let’s admit that we can not influence other traders. We can only change our attitude and behavior. So, the idea is to minimize the human factor in your trading. What do we mean by this? Getting rid of all emotions while trading (both negative and positive). Any of them can affect your trading performance. Furthermore, you should trade in accordance with your trading strategy, NOT INTUITION! Otherwise, you will have to manage additional risks associated with human mistakes.

A lot of information

Every day we connect to different information streams. Sometimes it becomes a problem to navigate through all the sea of trading-related information.

You can learn so much about trading and financial markets that it is sometimes easy to get lost. You have to look through the texts, articles, manuals, and many other things to learn before even grasping the trading basics. Understanding is not sufficient once you move on to a more advanced level, as you will require comprehensive first-hand experience. In addition, there are numerous ways to research the market and foresee the asset’s forthcoming price. All of them need a thorough knowledge of a certain technical analysis tool.

What is the potential answer to this issue? First, focus. Focus on one asset, one time frame, and one trading strategy. It is much easier to get lost when you do not have a clear image of what you are doing. Various assets are traded differently and require different approaches. Different time frames use different types of analysis. Various analysis tools provide different signals. In trading, all of these are very important. Thus, you might want to pick one in each category and learn them first before hopping to something else.

Conclusion

As you can see, the overall challenging nature of the financial markets results from its constituent parts being complex. Today we have covered three of them. It is easier to work with complex systems to split them into easily understandable fragments. In this case, it is effortless to fight different burdens one-on-one and not the system at large.

We hope this article makes your trading experience on IronTrade more comfortable in these uncertain times. Good luck.