Online trading is one of the most lucrative and convenient forms of investing. The trade requires smaller trading fees than the traditional stock trading and it gives you the freedom to trade on one platform, anytime anywhere.
Despite these benefits, most traders have given up since they find it hard to make profits. In fact, a study by Tradecity reports that 80 percent of new traders quit the industry after two years since they cannot attain their financial goals.
Here are some common trading mistakes that you won’t be making with 70 Trades Malaysia.
1. Little Or No Training
It is important for traders to undergo some training before they venture into the market. Just like any other course out there, it will equip you with the basic knowledge required in the industry.
Where can you get the necessary training on trading? You can enroll in an online trading platform or in a business school near you. If you are an internet savvy trader, you can count on 70 Trades Malaysia for your training. Regardless of whether you’re a beginner or an experienced user, you’ll learn something new to improve your game. Learning doesn’t stop once you know the basics of this platform
2. Lack A Trading Plan
Just like in any business, trading requires a scheme one must follow. This should include objectives, your financial goals, trading positions, limitations and measures to mitigate losses. All of this will help a trader conduct trades in a more objective manner.
Despite the benefits of doing so, new traders step into the industry without a trading plan. This is a disaster in the making. If you don’t know where to begin, the 70 Trades Theory is a good starting point. It allows one to earn consistently, regardless of the market evolution. The number 70 has been determined to be the average number of trades a new investor needs to make before they are considered successful.
A trading plan is something like a traveler’s map. It keeps you on the right track, and it lets you decide when to take or to avoid taking a position. Such decisions help you avoid trading mistakes that could lead to loses. Furthermore, a trading plan boosts your confidence, and it reduces emotional involvement while trading. You would want to strictly follow your trading plan if you want optimal results.
Overtrading is defined by Investopedia as the excessive purchasing or selling of trading commodities. While most people overtrade with an aim of increasing their profits, seasoned traders say that the vice is accompanied by many consequences that can lead to massive losses. For instance, overtrading reduces the time you need to gauge the outcome of a trading opportunity, increases trading costs, elevates your trading risk, and ultimately leads to trading fatigue.
Are you an overactive trader? If you are, the following are expert-suggested ideas that could help you circumvent overtrading.
- Stick to your trading plan
- Analyze the market before you take a position
- Formulate some solid money management skills
The training that happens at 70 Trades will surely prevent these from happening. The 1-on-1 training will help one remember the importance of moderation and calculated risks.
4. Blindly Following Third-Party Market Analyses
The internet is a rich source of third-party market analyses and computer applications that claim to provide the crucial information you need to make huge profits. But, the plain truth is that the pieces of information from the third-party analysis are mere opinions that do not guarantee you profitable results.
For that reason, it is crucial to analyze the market yourself just before you refer to the trading opinions on reputable trading platforms like 70 Trades Malaysia. You will learn the basics of trading, as well as a market analysis overview. There is no better way to ensure that your investments are doing well than by handling it yourself. This way, you will avoid the trading mistakes resulting from inaccurate third-party analyses.
5. Not Calculating Reward Vs. Risk Ratio
Many traders take positions with the anticipation of making huge profits whilst forgetting that they can also lose. In this event, these people end up frustrated whenever they lose money or keep over trading as a way to recover their lost investment.
Therefore, if you want to minimize losses, we suggest that you calculate the risk-reward ratio before you take a position. There is no reason not to earn profit quickly. However, one should go about it in a smart manner. The coaching for more advanced traders in 70 Trades will teach more about it. One will learn risk minimization tools and short-term trading strategies for optimal trading performance.
Trading is an excellent way to make a profit. Moreover, it gives you the opportunity to trade from anywhere anytime, and it requires little trading income. However, if you want to make a profit from trading, we commend that you take the necessary training before you start trading. One should avoid trading without a solid trading plan, third party market analysis, and overtrading. Luckily, all of these are preventable with 70 Trades.