Finance

Online Trading – 5 Mistakes New Traders Commonly Make

The world of commodity trading is indeed a mysterious one, whether it be crypto, Forex, or stocks and shares, traders buy and sell in real-time, using a secure online trading platform that is protected by bank-grade cyber-security.

If you are thinking of entering the trading arena, here are a few common mistakes that new traders tend to make.

  1. Trading with no solid plan – Perhaps the most common of all trading mistakes, your chances of success are greatly reduced if you don’t have a sound trading plan. Creating a plan for trading shares and knowing exactly where you are heading, while joining forces with an award-winning Australian trading broker ensures you can trade securely and have the full support of a leading broker.
  2. Trading too soon – It is perfectly natural to want to start trading and making money as soon as possible, but if you are not ready, you could start out on a bad footing with numerous losses from the very outset. Demo accounts are designed to put new traders into a real trading environment without using real money. If you join forces with a leading Australian broker, they will tell you when you are ready to move up from a demo to a trading account. Some people spend as long as 6 months demo trading, while others make the transition earlier, it really depends on you are fast you learn.
  3. Trading with emotion – This is a big no-no, of course, you should never attach any emotional value to a trade, yet some traders allow their emotions to creep into the picture. While getting a little excited is fine, it should not affect your trading decisions.
  4. Failing to use stop loss orders – A stop loss order is a tool you can use to limit your losses on a trade and if you use this tool correctly, it will prevent your losses from growing. Soft stop loss levels are recommended for experienced traders to minimize losses; your broker would offer you the best advice, after all, he wants you to be successful with your trades.
  5. Taking big positions – This is a mistake that new traders make; in their desire to make a profit, they take on bigger positions, which can lead to bigger losses. Like anything, you should start with small positions, trading in a structured and disciplined manner and as you gain more experience, you can increase your positions when trading.

If you are thinking seriously about becoming a shares trader, start by registering with Australia’s leading trading broker, where you can trade on a secure platform that is cyber-security protected. The learning resources they possess surpass anything you will find online and once you are registered, you have unlimited access.

Like any other profession, trading demands that you apply yourself 100% and with the right broker in your corner, the only way is up!

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