Trading. The main mistakes that hinder progress
NO TRADING SYSTEM.
Are you tired of hearing this mistake as the first paragraph? Well, what did you want to hear a secret secret?! If you don't have a trading system, then you don't have a plan. And how, excuse me, are you going to move towards your goal without understanding what needs to be done for this?
TRADING ON SIGNALS.
There is no trading system, but you want to earn money, right? This is where most of you use signals. Let's start with the fact that 90% of the signals are a real scam. And even if you hit 10% of honest signalers, you still won't earn. Why? Because you can enter a trade together with an analyst, but closing in parts, moving a stop loss order to breakeven, etc.? As a rule, such information is not posted in groups, and even if it is, you can easily skip it. As a result: the signalman will work - you will not.
INDICATORS ARE THE BASIS OF YOUR TS.
You must base your trading system (no matter if you are scalping, intraday or swing trading) on the mechanics of the market and understanding the market situation. Next, you should focus on important price zones (potentially interesting for market players), volumes. And only after that, only as an additional factor - pay attention to your favorite indicator.
THREE TRANSACTIONS IN THE MINUS - YOU NEED TO CHANGE THE TS, IT DOES NOT WORK.
"A very common mistake for beginners. But what can I say, even when I already had experience, it happened that a series of losing trades could drag on (there were 6-7 losing trades in a row). The main thing here is to realize that you have a working TS and in the long run you will remain profitable anyway. At such moments, the most important thing is not to give up and start sorting out new strategies, indicators, etc. Having passed through such a strip of losses a couple of times, you will understand that this sometimes happens and there is nothing wrong with that.It is clear that this does not apply to the situation when you have a deliberately unprofitable vehicle.
NOW IT WILL DEFINITELY REVERSE.
"Have you ever dragged your stop loss further? Yes, I know what happened. In some particular situation, it may have saved you. But in the long run, with constantly moving your stop order further and further into a loss zone - you will find yourself with big losses, as your management risk will be violated, namely, the "risk / profit" ratio.As a result, a negative mathematical expectation and losses in the future.