When we begin to develop a new activity or profession, mistakes are not unavoidable. Today we want to tell you about the most popular mistakes of beginner traders so that you can avoid them at first as you notice.
Absence of a trading diary
You need to keep track of your every action in the beginning, so you can hone your skills and choose the strategy that suits you best. Taking daily notes will help you do that, and a nice addition is to keep track of how hard you tried and what results you got.
Many newbies think that they should trade and follow the market all the time, experiencing FOMO (Fear Of Missing Out). It is this kind of overdoing it that leads to your eye getting washed out and you will make a mistake that will cost you money.
Risking too much
The higher the risk, the higher the earning potential. But the flip side of the coin is that when the risk increases, the possible losses also increase. That’s why experienced traders usually allocate no more than 1–5% of their total capital to one position.