Common mistakes

Being unprepared

Assuming easy profits

You may be surprised how many people only see the upside of the trades they place. Who hasn’t sat down and calculated the potential for profit, and perhaps even come up with ways to spend their future winnings?

It is critical to always be aware that you may lose. It is real money you are dealing with − your money − and there is always the chance that you could lose it.

If you prepare well, and if you stick to your trading plan, you should be more confident that you will have success. But as with anything, overconfidence can lead to errors, and so it is always advisable to carefully manage your expectations. Don’t assume you can sit back and just let the profits roll in.

Trading isn’t child’s play – and if it was, where would be the challenge? Treat the financial markets with respect, and factor in a few inevitable disappointments while you’re getting to grips with the techniques of trading.