ETF means exchange-traded fund industry which is to some extent difficult to the newbies. In this industry, only technical skills will not help you to gain success, you have to learn to control your emotions and trade with low risk. That’s why newcomers face complexities to make profits in this market. But, if they can improve their skills and knowledge, they can be able to earn money from this market. However, they do not focus on improving themselves. For this reason, they make some big mistakes in the market.
Now, we will demonstrate the big mistakes of the newbies in ETF trading. We hope that the article will help you spot the worst mistakes and help you to avoid them.
Not using the valid plan
Bear in mind, just making a plan is not enough for securing the capital. You have to make a valid plan which will help you to be on the right track. The plan will help you to trade systematically and reduce the percentage of making mistakes. But, as the traders do not make a better plan, they can’t avoid making errors. They do not put time into making it better. For this reason, they fail to develop an effective one.
Choosing a bad trading platform
Traders need to choose the right trading platform so that they do not face any troubles during the time of transactions. But, some traders can’t select the right trading platform and so they face loss. Some low-end trading platforms stop working at the time of the transaction process. As a consequence, traders face problems. So, if you want to avoid these problems, you need to choose a high-end broker which will provide you with a premium trading platform, and thus you can carry out your trading process smoothly. Visit here and learn about the features of the high-end platform, SaxoTrader. Once you go through the details of Saxo, you will never feel comfortable with the services of an average broker.
Trade with high risk
Some newbies have no idea about their risk tolerance level and so they face big troubles after taking the high risk. Remember, being a newbie, you have to take a risk by first identifying your risk tolerance level. Otherwise, it would become difficult for you to handle the scenarios in the market. However, at the beginner level, the newcomers must not take high risks. That’s because, at this time, they have no proper experience about the market. So, they need to make small profits by taking a low risk so that they can secure their capital.
Not improving the skills
Many beginners do not focus on improving their skills. They think trading a very easy of making money. They just need to make a plan and invest some money. But, that’s a misconception on their part. To trade profitably, as a trader, you have to focus on developing your skills so that you can take the right actions like a pro trader. Without having strong skills, you may not have the confidence to trade in the real market. Along with this, you will make more mistakes. So, work hard to improve your skills to give a better performance.
Not keeping the journal
If you do not know what your mistakes are, you can’t take the right measures to avoid making them. To learn about your mistakes, you need to keep a journal. The trading journal is an accurate record of your trading activity. If you analyze the journal properly, you may pinpoint the errors and find ways of reducing the frequency of those errors. The journal will help you to recognize your strengths and weaknesses. By knowing about your errors you can work to minimize them.
So, beginners make these common mistakes and thus face failure. However, if you can follow the mentioned courses of action, you can easily avoid committing these mistakes again in the market and ensure your profit.