Some mistakes to avoid
If you have fear about what could happen you will only focus yourself in bad opportunities. Fear obstaculizes us to see the real opportunities. The solution is to convince yourself that anything can happen in the market. A position can work or not, that`s it.
Triggering the gun too soon:
You cannot know what is going to happen before you have a signal. Even if you have a signal you don`t know what`s going to happen. So be patient. Wait for a signal, follow rules.
Expecting something of the market:
Again, anything can happen. Do not expect. If your expectations are not fullfilled you will feel betrayed.
Thinking about past trades:
The past trades have nothing to do with the now moment in the market. Every momento is unique.
Moving stop losses:
both moving stop losses to protect yourself more than what you expected at first, or moving a stop loss further to get marry with your loosing trade. Both are mistakes to avoid.
Not predifining the risk and where to take profit:
Before entering a trade predefine where you are going to exit a trade, both if you are going to take profit or if you are going to exit.
Leaving money on the table:
You have to know where to take profit and getaway of the market. Don`t be greedy. Predefine where to take profit.
Lie to you:
When you enter a position and it is not working you usually convince yourself that it is working. Don`t do that. You avoid this by knowing that anything can happen, so you are not afraid of being wrong. If you are not afraid of being wrong you will be able to see all the signals you learnt about the market, and therefore, know when a trade is not working.
Expecting a lot about a single position:
Again, you don`t know what`s going to happen. So do not put more money in a trade thinking this is THE TRADE, that`s gambling, follow your rules.
Cutting losses late, cutting winning trades too soon:
Let the profits run, cut your losses soon, that`s what you have to do. There is a lot written about the money management, some people reccommend 3x the stop loss for the limit profit some other say at least 1.5 Personally my take profit is at least twice the stop loss.
95% of the traders fail in FOREX and other markets. What the 5% have in common is the psychology. They aren`t excellent market analysers neccessarily, but they have a good trading psychology. The most simple system can work with a good psychology.