If you are considering joining prop trading firms as a trader, there are several beginner mistakes you must avoid to become good at trading. Here is the list of potential mistakes that many newbie traders make.
Mistake #1: Rushing the Process
The first mistake that many newbie traders make is rushing the process. Too many traders want to be number one and make money really quickly. Understandably, you want to live that exclusive Forex lifestyle and become that person right now. However, you are rushing and wasting your time because the thing is that it is not about getting there tomorrow, but it is about implementing the right steps and taking the right processes in order to get the results brick by brick.
You must have the right foundation and the right processes, as people are rushing past challenges to make a million instead of focusing on the process, such as strategy, data, joining a community, etc. Instead of rushing the process, rewire your brain, take a step back, and take things one step at a time.
Mistake #2: The Absence of Planning
Another potential mistake that many new traders make when they join prop trading firms is that they don’t have a clear plan. There is nothing wrong with dreaming, but a dream will remain a dream in the absence of organized planning. With a well-sought-out plan, a dream can become an action, and the action is what turns a dream into reality.
With that said, one of the basic mistakes that newbie traders make is to skip the middle part, which is all about planning. You might think of the plan as the trading strategy, the mantra, or the routine that can get you from where you are to where you want to be.
Important Note: You Need A Plan to Be Successful at Trading
In order to succeed as a trader, you must do whatever it takes for you to succeed. Replace your inner doubt with a certainty that you can do this. Not all successful traders out there are special. It doesn’t matter what background or trials you come from; you can still make it happen and become a successful trader.
Remember that it is always you vs. you, which is why you must start with a clear plan, write a to-do list, and take action. The best way to start is to have a strategy write-up so that you can understand your overall strategy, including your potential edge, along with refinements.
Mistake #3: Skipping A Trading Journal
As a newbie trader, you cannot make the mistake of skipping journaling. Why is that so, you might ask? Here is the thing: you cannot manage effectively what you don’t measure, and you cannot effectively measure what you don’t manage. With that said, it is incredibly important to understand what you are doing right and what you are doing wrong.
Conclusion
If you place all things together, you understand that as a newbie trader, you must avoid some basic mistakes, such as you cannot rush through the process and expect big wins. Part of being a successful trader is avoiding impulse trades, being disciplined, and having good risk management skills. You cannot go without having a strategy, and you need to keep a journal and refine it until you become a profitable trader.
