An enlightened man is he who can learn from his mistakes. Many traders on IronTrade still learn through losing money, making the same mistakes again and again. If you want to be more intelligent, learn from others’ mistakes. Here we’ve collected some of the most frequent errors that newbies make.
1. Fail to see the big picture
Every currency pair and any other assets are connected with each other. Some of them have more robust connections, some weaker, but they have it. You should understand how your asset is bound with the others to make better predictions, i.e., what affects it and influences the price. The first thing that comes to my mind is technical indicators. You can use them separately or combine them all together. Fortunately, IronTrade has lots of them. They are efficient and straightforward. However, if you want to evaluate the market better, you need to look at it as a whole, keeping in mind all minor connections that may affect each other. For example, check how the US Dollar correlates with the price of metals. Or how some major world events affect currency prices. Make a list of assets and learn how they relate to each other.
2. Great ambitions with a lack of practice
Some newbie traders are very excited about fast earnings, so that they invest all their savings immediately. Sometimes it is essential to slow down and spend some time practicing with small amounts. Even if you are sure that your trading strategy is the best and nobody can beat it, try to trade with small amounts first. The minimal deposit amount on IronTrade is about 10$. Such an investment will not break your budget but will help you prepare to trade with significant amounts of money.
3. Working without a trading plan
If you start trading without any plan and just want to earn fast money without knowing how then I’m here to tell you that it is not a reliable approach. Most probably, you will end up with a negative outcome. If you start to open trade after trade without analyzing your actions, you will get mad very soon because the losses will not wait long.
In order to stop this harmful experience, you need to set up some investment limits or sequence restrictions to control yourself.
4. Indicators. Indicators. Indicators!
There are dozens of articles about how to use them online. Even the IronTrade platform has a set of studies about them. You can find them here.
In general, indicators help to understand the previous performance of the asset and make some assumptions about the further direction. Please keep in mind that it is not a magic pill that helps you gain all the time, but just a good aid to any trading strategy. If you use several indicators together, you will increase your chances of an accurate forecast.
5. Trust, but verify
There is a lot of online professional scam that offer profitable trading on your behalf. We strongly recommend you NOT give access to your trading account to anyone. Nobody can guarantee you profits on stock markets. Any profit should be a combination of your own analysis, experience, and investment amount. Try to learn little by little and increase your daily budget as you advance with your skills.
