Why Traders Lose with IqOption? Trading Mistakes You Don’t Want to Make
If it was simple to trade, everybody would trade and everybody would be successful. However, we see many traders who blame everything but themselves for the fact that they can’t win and save their money and we seeno too much of traders who succeeded. So why it appears to be like that?
The thing is, on the market you may win only if someone else loses. So, it may look that 50% of traders are winning pretty much all the time, while the 50% half is losing. Nevertheless, being honest, the ratio of successful traders to the unsuccessful traders is not actually near to 1:1. It is commonly known that the majority of traders who have ever entered the financial market will lose their funds and then would never come back to trading.
If you are not one of these traders and have chosen to make it through, you may want to know how not to do these mistakes.
Trying to beat the market
The market is large, but you, a retail trader, is not. People say not to go against the market and follow the trend, and there is a reason for that. Large international investors may decide to go against the trend for the purpose of affecting the price of the asset . But it doesn’t mean that everyone should now do that. You, a retail investor, don’t have a power over the price and may only work under the market conditions. You have to analyze the market and adapt don’t try to go against it.
Not admitting you are wrong
People usually see the market as a machine, that doesn’t have a soul but, in fact it is a collection of traders who make sensible decisions, which have an effect on the general result. Trading may be seen as a craft as well. Consequently, you have to always get better, work over your mistakes, understand it when you weren’t right and keep moving ahead with just gained knowledge and skills.
Being the smart one
A number of traders think that they are just too good to have the ordinary mistakes, noticed on the markets, but they actually have chances to do exactly these mistakes. It may take a lot of time to analyze other trader’s strategies and receive a constructive criticism. Remember, stay true to yourself and stay modest, don’t be the one who thinks he knows everything but keeps losing funds.
Picking tops and bottoms
Obviously, it is a nice idea to buy low and sell high, yet, it is not that simple to do that in practice. The hard thing is to measure the accurate moment when there will be a trend reversal.
A majority of traders who use this strategy not correctly, buy the ‘falling knife’, this is a stock that will keep losing. At the end, they will sell even lower than they bought before, watching their balance slowly decreasing.
Turning to emotions
You can be emotional in an everyday life, but in trading, you shouldn’t be emotional. Both positive emotions, because you are winning and negative emotions, because you are losing can have a bad effect on your trading performance. In case you feel emotional, it is better to stop for a while and relax. In another way, you have more chances to make a mistake.
Most of the mistakes that we have mentioned have to do with how people think and behave when we lose or win. Remember, when you trade, you should never rely on your emotions.