Being a trader, you will certainly experience the difficult part of trading and also enjoy satisfying part of the profession. Probably the satisfaction comes from the enormous and laborious work that requires such employment. Of course, working from home, for oneself gaining and making enough money is something that appeals to many. But have you ever wondered what the most common and silly mistakes an emerging trader could make? Probably you are also a beginner, and therefore the answer to this question is too difficult, but do not despair, this article is meant to guide you.
4 Mistakes You Would Do Better to Avoid
Online trading is a great opportunity, you can make good money, but you can also lose money too if you do not pay attention, to 100% of the capital invested. The desire to start is so strong that most traders choose to work with the first broker that happens.
Choosing the right broker means knowing the characteristics and believing that they can meet their needs. That is why it is important you look at reviews made on broker platforms. I recommend you check out Juno markets review to know what an ideal broker should look like.
The use of leverage as you probably already know can both be an advantage and also the reason for your loss, this because the lever acts as a multiplier: it multiplies both profits and possible losses. Very often we tend to use a 1: 100 lever because considered normal. However, this level is extremely dangerous and exposes you to high risks, mostly to less experienced traders. We recommend using financial leverage of 1:50 which Juno markets forex offer. This is much less risky and allows you to maximize the use of the multiplier effect.
Another biggest mistake of beginners is to want to "get rich" right away, which pushes them to invest a larger percentage of their trading capital without considering that the same activity they do, the trading, in fact, is based on the probabilities that a given signal generate a certain movement, ergo, not all signals generate profits and it is, therefore, necessary to reduce to a minimum the amount of fund invested per individual transaction. We advise you to invest only 5% of your capital per transaction.
It might be that you consider trying new things, you want to experiment with new ways of making money and then, without knowing absolutely nothing, you begin to invest very often by chance, without taking into account that to get the profits you have to follow a strategy trading. These can result in serious losses, mainly the reason why newbie traders tend to lose money more.