Trading always creates an allure and promise from the outside. Many enter the market with hopes of doubling or tripling their assets in a short time. But the harsh truth is that most traders lose more than they gain. The cause lies not only in the market's volatility but primarily in the wrong approach. Below are common mistakes that cause traders' accounts to 'evaporate' quickly.
1. Overtrading
Many believe that the more one trades, the easier it is to make a profit. But in reality, each trade does not necessarily increase the risk, trading fees, and can deteriorate one's mindset. Successful traders often only choose moments with high winning probabilities, patiently waiting for opportunities, rather than 'jumping' into every small market fluctuation.
2. Poor risk management
One of the important principles of trading is that protecting capital is more important than making a profit. Trading without setting a stop-loss is like going out to sea without an anchor. A sudden drop can wipe out the results of an entire month. Professional traders always determine in advance the maximum loss they can accept and are decisive in cutting losses when necessary.
3. Trading based on emotions
Fear, greed, impatience, or anger can turn a reasonable strategy into a major mistake. When emotions overshadow reason, traders easily fall into the trap of chasing buys, panic selling, or hastily recovering losses. To survive long-term, traders must learn to control their mindset and adhere to discipline, rather than letting emotions lead the way.
4. Pursuing 'pump' moves
Most retail investors usually jump into the market when a currency has surged suddenly. But at that moment, 'whales' often quietly sell off. As a result, retail traders end up 'buying high, selling low'. Instead of chasing short-term waves, traders need to focus on trend analysis and find entry points before the market explodes.
5. Lack of a clear plan
Trading without a specific plan is no different from betting. A trading plan must include:
Clear entry points
Tight stop-loss level
Reasonable profit target
Pre-calculated risk-reward ratio
Without a plan, traders easily get swept into the market and make impulsive decisions.
Conclusion: Trading is a Game of Patience and Discipline
Success in trading does not come from winning every trade but from surviving long enough for the account to grow steadily. Those who can manage risk, control emotions, and stick to their plans will always have a superior advantage over the majority.
Trading is not a game of chance; it is a journey of developing discipline and self-control. Those who understand this early will have a chance to become survivors and thrive in the market.
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