Novices are generally optimistic and confident when they first enter the market, especially if their first few trades go well. They begin to believe that trading is easy, that they have found a way to get rich, that they were born to do it. In fact, trading is a demanding industry, a job that requires professional skills. If you start out with overconfidence, you will take excessive risks.
There is nothing wrong with good luck at the beginning, but early "success" is not necessarily a good thing. Because the luck of novices is often easily turned into mistakes, for example, the profit brought by stop loss will eventually cause you to bury your entire account.
Don't be too confident. I made some good trades at first and thought I was a trading genius. Excellent traders all admit that trading is not easy, and requires continuous learning and strict operating discipline, not simply buying low and selling high. It's natural to be happy about making some money, but don't expect too much in your first year of trading. Don't stop learning, end up learning from your winning and losing trades. Keep a daily transaction log and develop the habit of analyzing and summarizing after the transaction is over.
A mistake often made by novices is that they do not have a plan to trade at will. Sometimes they trade immediately when they see other people’s suggestions. Sometimes trading by feeling, the typical thought is "it has risen so much, it will definitely not continue, you should short..." and vice versa. If people can get rich in this way, there will be no poor people. Every transaction should be regarded as a war. Without preparation, plan, and strategy, it is just the courage of the common man, and the end result is defeat.
Novices also tend to ignore the risks and use excessive leverage. Now foreign exchange brokers that provide hundreds of times or even thousands of times of leverage can be seen everywhere. Many advertisements and publicity only emphasize that high leverage can magnify profits, but please remember that leverage is a double-edged sword. If you use it improperly, it will easily destroy you. Some novice accounts are only micro-accounts of 100 US dollars, but they use up to 100 times leverage to trade 0.1 lot. One or two mistakes will lead to liquidation, and then they will spread foreign exchange as a trick.
You should view every trade as a learning opportunity and not just focus on making or losing money. Every trade is a lesson for you to learn as a novice, learn to specify a plan, and study a strategy. Every transaction is a tutorial for you to learn stop loss and stop profit. Once you specify a plan and have your own trading strategy, stick to it. Evaluate the performance of the plans and strategies at regular intervals, where areas need to be improved, and continue to improve.
My advice to novices is to be patient and don't rush to make money. The first year is equivalent to entering the first year of college. To master professional skills, you need to take a lot of courses. Be careful with your behavior, and don't get fired (eliminated) in the first year.
Add
