I knew a long time about Forex trading but I didn’t know that right now everybody can learn how to do it. When I became a member of iMarketslive and I started with IML Academy I thought that this was something I would master in a bit. I watched videos and did everything they wanted. After 2 months of learning and trading on a demo account I went live!! I thought trading with real money would make me sharper.
The first live trade I made was with Stevenson Lindor om IML TV. I deposited $100 and won $200 in the first week with just one trade. I was happy and loved trading more than before.
It is not because of one winning trade that you can think that you can trade. You could be lucky and it could be that you had some help making the trade. In my case I had help of Stevenson Lindor on IML TV. I followed him for some time, understood most of the time what he was saying, but I didn’t realize I didn’t have the experience that he did. When you think that you can trade, you will take unnessesary risks. This will lead you to more mistakes.
$200 with a lot size of 0.01. Imagine if I had a lot size of 0.1 then I would have won $2000. With a lot size of 1.0 that would have been $20000. You start to think about all the things you could have done with that money. Ok, maybe my account is too small for a lot size of 1.0, but maybe I could try next with 0.5. A $1000 is not bad at all.
Deposit more money
If I want to use a bigger lot size, I had to put more money in my account. So I did. But could I really handle that?
People who know me would say that I am very patient, kind and forgiving. This is my life before trading. In no time I was a revenge trader. When I started to lose trades I just trades to win the money back. Revenge for the trades that went wrong. So I was trading the whole time and losing more money than winning.
I had to trade all the time. Not trading meant losing money. So I had to be in at least one trade. I was doing Swipetrades, following Stevenson Lindor, following trades other teammembers were putting in the chatbox, and at a given time I didn’t know what I was doing. Why did I enter a specific trade? What were the risks involved? Which one was a day trade or a swing trade? You would say, the problem was that I did not had a plan. Even if I had a plan I would not adhere to it. I had to trade, I had FOMO (fear of missing out). As you would know fear is our biggest enemy. It for sure was mine during my first year of trading.
When you do not know if a trade is day or swing trade, you might get in panic when everything is red on your metatrader 4 and you think you will not be able to recover the money or do not want to loose more or … But after stopping a trade, closing out you will see the market going the way you wanted it. But you are not in the trade anymore. There is not much money left to trade with the same lot size again. Will you trust it again to go in all the way again.
A lot of things went through my head when my trades were losing more then I wanted. If you know what you are doing, you will not panic.
Not stopping a losing trade
Not stopping a losing trading make me blow up an account. I started to trade cryptocurrency. Well, without knowing the things I should. What I knew was that that trading cryptocurrency you could win money fast with small lotsize. I had some good trades, so I was all in with trading cryptos.
And then the cryptos fell, I was buying. All my blue numbers turned red. “No problem. With crypto things can change fast.” That was what I was thinking. Prices really dropped, but I was still hanging in my sell. Day in day out, because I was sure the market would turn and I would not loose all my money. One morning I woke up. No blue, no red, no account.
Mistakes in Metatrader 4 (MT4)
Some other common mistakes that rookie traders make are the mistakes in MT4. MT4 is the app that traders use on their phone to put in their trades. When putting in the trades, I made a lot of mistakes. The are a lot of places things can go wrong.
In the beginning I was confused by all those pairs and crosses and I put in the wrong pair. Sometimes I put in a sell limit in stead of buy limit. The same happened with buy and sell stop.
Mistakes with the lot size are not unusual. The size from your last trade stays in, so if you do not pay attention this can go wrong. That is why they advice to use the same lot size a whole week and change them during the weekend or at the start of the new week.
I think that I do not have to explain that mistakes with prices, stop losses en take profits are very, very common.
After the mistakes
I do not make as many mistakes any more, but I still make mistakes. I wrote my mistakes for you believing that I can only make you conscious about them, but I do not think you can avoid them completely. It is only when you experience them that you can truly avoid them. Be careful, do not take unnessaray risks. Know what you are doing.
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