The 5 Biggest Mistakes Most Traders Make
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#468: The 5 Biggest Mistakes Most Traders Make
In this video:
00:32 – Stop making these mistakes
00:48 – #1 Most traders lack a trading strategy
01:39 – #2 Lack of understanding about correct money management
02:45 – #3 You need high reward:risk trades
03:45 – #4 Knowing when to trade
04:33 – #5 What is the price?
05:39 – Blueberry Markets
06:20 – Contact me for future video topics
I'm going to cover the five biggest mistakes that I see most traders out there making and help you so that you can stop making those same mistakes and turn yourself into a profitable forex trader. Let's talk about that and more right now.
Stop making these mistakes
Hey traders, it's Andrew Mitchem here at The Forex Trading Coach with video and podcast number 468. I want to give you five really important points today and they are the five points that I see that most traders out there are making with the aim to help you not make those mistakes and therefore to improve your trading.
#1 Most traders lack a trading strategy
So, first thing I see, and these are really in no particular order is people don't seem to have a strategy. They don't know what it is that they're looking for and therefore they're just kind of trading on a bit of a hunch. They have heard something on the news, or they're just randomly taking buys here and sells there or this indicator might cross over that one, but they don't really know what they're doing.
So I think a lack of a clear strategy is one of the biggest failings of most people out there. And to me, a good strategy means that you have full confidence in it. You know exactly what you're doing when you're doing it. And it will work equally as well across all different timeframe charts, all different markets, all different times of years, et cetera. So you need a good solid trading strategy. That's the first thing that most people are failing on.
#2 Lack of understanding about correct money management
The second thing is that most people really do not have any idea when it comes to correct money management and people will just place a trade. I think MT4 or MT5 is defaulted to one standard lot. So they just press buy or sell one lot or 0.1 lots or 0.01 lots. They don't really know about money management and how to correctly position your trade size. And the reason that people don't know that is they don't know where they're putting their stop loss or anything like that in order to calculate that people don't know that different currency pairs make or pay different amounts per pip, depending on what your account denomination is so whether it's in US dollars or euros or New Zealand dollars or Canadian dollars, things like that. And if you're trading the Euro-US with a US bank account, as opposed to the Euro-US with a New Zealand bank account, you'll get paid different amounts per pip. So people don't understand that and they just put random lot sizes on and not calculate that properly. The issue therefore is they don't have controlled risk on their trades.
#3 You need high reward:risk trades
