The opportunities for growth in JustMarkets are high but any trading platform implies risks and to get a good result, it requires knowledge, practice, self-control and the ability to be prepared for a loss. New traders in particular have certain behaviors that may be deemed as detrimental or which necessarily contribute towards the trader’s loss or slow down their progress. Below are the common trading pitfalls to help you maximize your experience on JustMarkets and consequently avoid trading mistakes.
1. Trading Without a Plan
The biggest no-no in trading especially for beginners is charging into the trades blindly. The strategy is most important for trading since the market can vary in its tendencies and require more attention during the analysis of quotes. Your plan should define what you want, what you are willing to lose, and your preferred type of trading. When this step is excluded one would get hasty decisions as well as volatility on the results to be achieved. The resources available on the JustMarkets Help Center can guide you in setting up your trading plan, including advice on setting stop-loss orders, profit targets, and entry/exit points, helping you make calculated moves rather than emotional ones.
2. Not Listening to Market Information and Data
Unlike some others trading without consulting or analyzing the market is like driving in the darkness. JustMarkets contains a set of tools and materials that may assist traders in performing critical analysis. But others turn away from all those aids and engage in trades without knowing about the existing trends, fundamentals, or even indicators. Just Marked Help Center also provides instructions on how these tools can be used to improve your trading, as well as provide you with knowledge for making the right decisions. Adhering to proper analysis is very crucial to minimize unnecessary losses and increase the probability of trades.
3. Overtrading
One of the most significant problems a trader can face is overtrading regardless of the trader’s level of experience. A majority of the traders always want to trade, assuming that the more trades they make, the more profits they earn. Nevertheless, through overtrading, a trader can lose all his/her capital and extend to more risk than required. It also means that on JustMarkets, quantity should be sacrificed for quality. Make sure to work only those trades which are in the plan and don’t chase rates thinking that this way you will gain a lot, you will end up in losses.
4. Neglecting Risk Management
That is why risk management is highly significant for sustainable success. Lack of stop-loss orders or over-extension of the value per trade is very risky to the trader who end up losing so much. JustMarkets also provides an opportunity to use leverage and this has to be done with great caution. Coping with overall risk, it is next to risk more than 2% of your trading capital on a single trade to avoid huge losses and build steady profits.
5. Theoretical Framework
Traders can be their own worst enemy because of what they feel. Two major instincts that cause people to make wrong choices are fear and greed; the decisions may involve waiting for a loser to turn around or exiting a winner too quickly. In trading, having emotional discipline is appropriate because it enables one to stick to their plan. Sometimes people get so caught up in the heat of the moment that it’s important to sit back and analyze where you are and what you are doing.
6. Chasing Trends Without Understanding
It is always easier for a company to grab a trend and run with it, but it is not always safe. If you fail to grasp the causes of a specific trend, then you are likely to join the bandwagon way too late, thereby easily exiting the trade only to find yourself nursing losses when the trend turns counterproductive. Refuse to be influenced by short-term perspectives by other traders, but venture into the market on your intelligence gathered through research and understanding of your trading plan.
Conclusion
If one is keen to avoid making these mistakes, it’s quite likely that they will succeed on JustMarkets. These simple things will help you avoid emotional trading and make a rational decision that is profitable for you. Do not forget to use all the tools and materials provided on JustMarkets and turn to the JustMarkets Help Center for help when trading. If we invest some time, effort, and a lot of practice, we should be able to steer through the market much better and trade higher.