ETF trading is more like an art. If you want to survive in the ETF trading industry, you must learn to take the trades with strong confidence. Those who don’t have the confidence to deal with the ETF market, keep on losing money most of the time. Novice traders keep on making the same mistake and blow up the trading account. As a new trader, it is very normal that you will make some silly mistake. But if you fail to learn from your trading mistake, you are never going to become a professional trader.
To become a professional trader, should be able to identify your weakness and fault. Unless you do that, you will never become prepared for the currency trading profession. Today, we will discuss the top three reasons for which rookie ETF traders are losing money. Let’s jump into the details.
1. Lack of knowledge
Starting to trade the market without having any basic training is a very big mistake. As a trader, you should realize the fact, trading is more like an art. Unless you take the trades in a very strategic way, you will be losing money most of the time. Professional traders spend years learning the important details of the market. While learning about the basics of trading, you might get confused about this market. This is normal and there is nothing you need to do about it. If you want to survive in this profession, you must learn things by heart.
While learning the basics of the market, you should not use a real account. Try to learn things by using the practice trading account as it will give you a better picture of the market. Moreover, you will be able to develop strong sets of skills that will help you to avoid the losing trades
2. Using too many tools
The rookies always use too many tools. On the contrary, professional traders find their trade signals by using the saxotrader in a very simple way. They never rely on complex tools since they know it will make things worse. If you want to change your life, we strongly recommend that you do not use too many indicators or tools. If you do so, you will become confused with the market dynamics. We can’t process tons of data in the volatile market. So, we must be careful with our actions. Never take the trade in the ETF market based on emotions. If you do so, you will keep on losing money.
The best way to avoid using too many tools is by learning the art of price action trading strategy. Price action trading strategy will allow you to find reliable trade signals in the market within a short time. You will become much more confident with your actions and thus you will be able to make bigger profits. And consider the reading from the indicators just as an indication to filter out the bad trades. Never rely blindly on the indicators reading as it will make things worse.
3. Trading with big lot
If you intend to make a regular profit in the market, you should never trade the market with a big lot. You should learn about the importance of risk management policy and only then you can expect to succeed as a trader. The professional traders always think they know every bit of detail about this market. But this is not all true. That’s why they often lose money. But smart professionals always trade with discipline and keep on learning new things about this market. And thus they never take high risks in the trading profession.
Always trade the market with the small lot so that you can endure the losing trades. Unless you systematically do that, you will never become a full-time trader. So, bring necessary change to your trading system and learn to trade with a conservative method.