Mistakes of term traders

Published: 12 November 2018 Updated: April 24, 2023

Many investors who sought high rates of return in futures trading for reasons they do not understand have failed. The prerequisites for a negative result were mistakes that are common among online investors, especially newcomers without knowledge and experience in trading processes are subject to them. So what do investors make mistakes and what prevents them from earning - that's what we dedicate our article to.

Undoubtedly, any newcomer, coming to the futures contracts market, cannot trade effectively at once - first of all, it is necessary to gain the necessary skills and experience. This is what many call the main mistake that stands in the way of success. Yes, the financial market is a complex matter which does not forgive mistakes. At the same time, the right actions help to go through a difficult period with minimal losses and disappointments. It is necessary to approach trading correctly and follow the recommendations of professionals. Analysis of possible mistakes at early stage will help to understand technical processes of working on market and will let pass quickly the hard way of formation.

So, here are the main trader's mistakes:



The main reason for failure among novice investors is their own arrogance. Most investors want to make money right away and rush to open trading positions immediately after registering an account with trading platformthinking it's easy! No, the market is complicated and requires deep knowledge and practical skills. Therefore, before you open the first contract on the futures market, it is necessary to pass at least the minimum course where you will comprehend finer points of the market analysis, technical opportunities of the terminal, learn algorithm of trading instrument. After that you can switch to the educational trading mode. demo account. Only after practicing on a demo account and getting stable positive results, you can start trading with real funds.

Mistakes of Term Traders

You can't be complacent in urgent online trading! Traders who have been successful have put a lot of effort into learning and gaining practical skills!


Trading without a system

Many people think that market fluctuations can be simply guessed. Yes, it can be done for a certain period of time, but it will not be possible to earn stable money that way. Financial activity on the market requires deep analysis of a lot of indicators, on the basis of which it is possible to make an effective trading forecast. Therefore, the need to work on the strategy is a critical point of successful trading.

Trading without a system

Strategy - is a certain set of tools and rules that allow you to steadily make a profit. Basically, the strategy is based on a certain technical approach to market forecasting and clear rules of capital management. Professional futures market investors often use indicator analysis techniques or systems based on algorithms for determining cyclic market patterns. Thus, gaining technical and statistical advantages over the market, they can obtain stable growth of their own capital. Therefore, starting trading in futures contracts you must, first of all, find for yourself an effective system of analysis - only this way it is possible to work effectively on the market.


Greed of the investor

In trading it is undoubtedly the main psychological factor that has the strongest influence on the trading index. The thought of the possibility of big earnings leads to excitement and greed, as a result, the trader rushes into the most unthinkable adventures. The main mistake here is using trading positions with high level of value which does not correspond to the opportunities of the trading capital. To put it simply, investors take all of their deposit and put it on one contract. As a result - loss of all trading funds and negative attitude to trading. Any trading platform always warns the trader that his work on the market is a risky approach to income! This phrase should always be in the investor's head! To work safely in the market and make money instead of just losing money, you need to use money management techniques - Here it's simple: use trading positions of no more than 3% and your funds will be safe, and if you get a loss you can easily compensate them later.


Trading against the trend

Operations in the market against the trend is a completely useless occupation. You can undoubtedly get a certain amount of money working on corrections or technical pullbacks, but only a trending market movement, which is perfectly predictable, can give the highest performance anyway. There is an excellent expression in the trading community describing the trend as the most profit-friendly phenomenon. Trading operations should be carried out only in trending of quotations and no other way. Any, even the most predictable corrections and pullbacks, will still destroy your capital.

Trading against the trend


Emotions and Psychology

Sad to say, but our own bodies, their physiology and psychology are the biggest enemies in trading. Most failures traders experience when they can't tame their emotions, such as excitement, desire to win back losses quickly or make huge profits, irritability. This is what prevents traders from soberly analyzing their actions and the market, which leads to mistakes and loss of funds. Otherwise, by controlling emotions and your psychology when working in the market you will get plenty of opportunities to earn money and achieve success.

Knowledge, cold calculation, effective strategy and the ability to analyze mistakes - that's the key to successful trading!

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