There are some common mistakes people generally do in online trading. Here in this blog we explore those common mistakes & try to find out the solutions also to avoid these mistakes. Below are the common mistakes –
1. Trading Without a Trading Strategy
It is very common mistake that people do while doing online trading. Being a trader everyone needs a trading plan. If you don’t have any trading plan you must suffer in future. Future plan is always required whether you’re a trader, student or anybody. You should know always the pros and cons of it.
2. Opening Deals Of Inadequate Size
If you’re doing online trading you must know about the opening deals and closing deals. Fresher in online trading most of the time do this mistake that they take inadequate size in opening deals. It is not necessary that you should do online trading with big amount. First of all you have to do research properly before entering into online trading.
3. Using No Stop – Loss Order
Another common mistake is that people do not know at what point they should buy and at what time they should sell. You should know at what point you’ve to stop. Using no stop will occur losses in your account.
4. Misusing Leverage
Trading should keep in mind not to misuse the leverage in online trading. Always keep a good track of leverage.
5. Letting Profitable Trades Turn into Losses
If you’re new in online trading it usually happen that your profit will turn into losses after sometime as you’re new and you’ve less knowledge in online trading. People generally do this common mistake to let their profitable trades turn into losses.
6. Lack Of Research
One more mistake people tend to do is lack of research. This mistake is not done by intentionally but people get into the trap of it.
7. Following The Crowd
It is just like pursuing the same career which your friend chooses. Same thing happening in online trading, you’re just following the crowd and doing this mistake in online trading.
8. Being Able To Accept Losses
Don’t do this mistake in online trading. People accept their losses and don’t try to recover it. In online trading you must know which deal is good which is not and what is the ration of profit and losses in online trading. Don’t accept loss in any condition. Try to focus on profit only.
9. Not Tracking Trades In a Trading Journal
People avoid tracking trades in a trading journal. This is the most common mistake people do in online trading. Everyone is not used to track trades in online trading.
Conclusion
If you’re doing online trading first time then you should keep the above points in your mind. Always keep in mind not to do common mistakes as most of the people do.
