Various types of traders spread all over the world, from the unsuccessful to the successful. sometimes we have to learn the characteristics of a trader's failure. Here are 6 things you should avoid in trading, where these 5 thoughts become the points that contribute greatly to the failure of a trader want it newcomers and traders who desperately survive in a long time:
1. Trading is easy
Trading is easy, to plunge as a trader and make transactions already referred to as trading. the easy thing to jump into the world of trading is inversely proportional to its "easy" to succeed in the world of trading. Like everyone can sell chili, easy to buy chili and sell it back. But is it all successful? no. Only a handful gets rich and some are at a decent stage of living. But most fail against natural selection. This applies equally in the trading world. to achieve success requires persistence, consistency, discipline and a wise attitude in every decision. Is it all that easy?
2. Must Every day to fate in the market
If one still thinks to have to trade in the market every day, then there are only two answers. The first they are too greedy, meaning they have not mastered one of 3M, the mindset. Sometimes the market conditions move very wild where it is difficult to predict, it is a condition where the probability of our transactions decreases to the stage of gambling. If you want to be a long-term trader, never gamble !!
3. Always Profit
You believe that in every transaction a trader profit without loss ever? Well maybe it does exist, but how many transactions and how long a trader without ever experiencing loss? As is known that a profitable trader is a trader whose portfolio provides greater profit than the loss he has collected. So do not get me wrong, the loss is a part that is always there in the traveling trader. What distinguishes a failing and successful only total collection loss and profit.
4. Money Management
If someone states that money management is not important, you should begin to look at every word of this forex world. just think of it as a lesson from traders that will fail in the long run. Did you know why 9 traders from 10 forex market players fail? Because they ignore this important thing. initially, they may do well, but due to the discomfort of running the planned risk-reward, they ignore it for their own desires. So remember that Money Management is one of the important elements in the long-term portfolio.
5. Accuracy Win 99%
One word, Exceptional !!! You should apply a trader who states 99% accuracy of trading to Forbes to be interviewed. He can be a billionaire in the near future. But if you're a bit more critical, try to check out professional traders' interviews that say they average "only" to a 70% win ratio, some only reaching 55% win ratios. 90% is a stunning number, how can that person not be among the richest people in the world? Minimal in Indonesia?
6. Strategies that are capable of producing in all market conditions
According to the Dow theory, market trends have 3 phases, accumulation, participation and excesses. But sometimes the market moves in consolidation, no one knows when the consolidation or when the market will move the trend. all only based on the characteristics that the market shows in the past and is assumed to be moving according to the same characteristics in the future. Strategies that are created and created usually runs well in one market condition, trend or sideways. Not to mention instability market due to war or natural disaster, the loss will appear in your portfolio. Like point number 1, the loss is an inevitable part of the trading world. so do not go crazy looking for the holy grail, it will only erode your psychology as well as wasting your precious time.