Trading checklist for error prevention

 How to Deal with Trading Errors? Some traders learn this the hard way, losing money and repeating the same mistakes over and over. Others prefer to be careful and avoid unnecessary punctures if possible. What kind of trader are you? If you prefer to learn from other people's mistakes, this checklist is for you. We've rounded up some of the most common mistakes novice traders make.

1. Ignoring the big picture

If you have chosen a specific asset for trading, be it a currency pair, stocks or cryptocurrency, it is important to see the big picture that affects the price of this asset. Of course, the use of technical indicators is good, and their data is quite accurate, but traders who want to develop must learn to evaluate the market as a whole. How does the price of gold compare to the US dollar? What assets and to what extent will the US presidential election affect? There are fairly simple answers to all these questions, and the task of the trader is to learn how to work with economic factors.

2. Immediate trading with real funds

Although the main goal of any trader is to profit from trades, sometimes this implies that you need to stop and not trade with real funds, but first devote time to training. Even if it seems to you that you have thought of everything and you have a working trading strategy, it will not hurt to try it out on a demo account. You will be able to find some weak points, fix any flaws and really prepare to trade with real money.

3. Trading without a set limit

Many novice traders approach trading without any plan. They do not know the principles of work and what results to expect, but simply want to earn. This approach is not only unrealistic, but also harmful, because the trader will constantly suffer losses. The algorithm is simple: the trader finds the asset he likes and starts opening deal after deal without collecting any useful data. When the outcome of the deal is as desired, everyone is happy. When the result is negative, they are unsettled and make the next investment.

Such a vicious circle is not uncommon, although it is not difficult to break it. Setting an investment limit or stopping the very algorithm of actions can be a good tool for self-control.

4. Ignoring indicators

Technical indicators are not the secret to guaranteed success, but they can be of tremendous value. Indicators help a trader assess the past performance of an asset and make certain assumptions about the future movement of the market. There is no indicator that always gives 100% accurate signals, but for any strategy it is a good help. A working combination of indicators increases the chances of a correct forecast.

5. Trust scammers

Last but not least, many traders choose to hire someone or contract with someone to trade on their behalf. Not only is this completely prohibited on the IQ Option platform (here every trader should only trade on their own behalf), but it can also be dangerous for such employers. There are many scammers and dishonest people who will simply deceive you: you send them a deposit and you will never see them again.

To truly achieve success in trading, you need to learn and practice on your own. It's the only way to get better, and it's naive to wait for someone to do it for you.

What trading mistakes have you made in the past? How did you deal with them? Write about your case in the comments.

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