Every successful Quotex trader has made his share of mistakes in the past. The distinction between those that end up succeeding and those that don’t is that the successful ones were able to learn from their mistakes and not repeat them. Knowing the most common mistakes can help you get past the learning curve quicker and preserve your trading capital while you refine your skills.
Overtrading
Overtrading is perhaps the worst of the bad habits that plague Quotex traders. Ease of use of the platform and the excitement of quick profits are enough to ensnare traders in a trap of having to always be on some positions. This results in taking weak setups, ignoring proper analysis, and eventually blowing trading accounts with a series of marginal trades.
Revenge Trading
Revenge trading occurs when traders seek to recoup their losses by making increasingly aggressive trades in the hopes of getting even with the market. Following a losing streak, urge to get even with the market can overwhelm good decision-making. This most often results in even greater losses and a spiral which can destroy accounts in a matter of weeks. The best defense against revenge trading is to have established procedures on how you will handle losses and to step away from your computer when emotional periods are at their peak.
Ignoring Money Management
Ignoring money management principles is perhaps the fastest way to ruin in Quotex trading. Traders are missing just one thing that they focus on finding profitable trades only, while ignoring the critical aspect of money management. It might appear like risking too little on individual trades, not having a good position sizing plan, or not having proper risk-reward ratios, even traders with better analysis skills might end up failing if they do not handle their money properly.
Copying Others Blindly
The error of copying others blindly is especially prevalent in the era of social media and trading forums. Learning from seasoned traders is a good thing, but blindly copying trades without knowing why they are being made is a formula for disaster. Good trading calls for learning to formulate your own analytical ability and comprehension of market dynamics. Something that works for one trader may not work for another because of variations in risk tolerance, time availability, or psychological disposition.
Chasing Perfect Entries
Chasing perfect entries is another common error that can have a profound impact on trading outcomes. Traders become paralyzed by the quest for the “ideal” entry, allowing good trades to slip away while waiting for optimum conditions that never seem to arrive. Markets are unpredictable and erratic, and waiting for perfect setups has the tendency to cause missing winning trades. Mastering the ability to act upon good-enough setups with good risk management usually proves to be more profitable than waiting for perfection.
Ignoring Timing in Short-Term Trading
Ignoring the timing can be particularly costly when doing short-term trading. The majority of traders focus on price direction but not on timing. You can get the final direction of an asset correct but incorrect on timing, and you’ll lose on trades that would have been winning with different timing, understanding market rhythms and choosing the proper timeframes for your analysis is crucial to being successful.
Failure to Adapt to Changing Market Conditions
The inability to adapt to the changing conditions of the markets is the biggest stumbling block for most traders. Markets go through different phases – ranging, trending, high volatility, and low volatility – and what works in one setup may not work in another. Successful traders acquire a few techniques and know how to apply each at the right time and holding on to only one way irrespective of the market is a recipe for disaster.
Emotional Decision-Making
Emotional decision-making can destroy otherwise great analysis. Hope, fear, greed, and frustration can all lead to poor trading decisions. The most common is deviating from your trading plan for emotion rather than analysis. This may be holding losing trades for too long because you anticipate they will turn around, or closing winning trades prematurely because you do not want to lose profits. Developing emotional control is often more important than improving analytical abilities.
Excessive Reliance on Indicators
Excessive use of indicators without an understanding of their frailty is a frequent mistake. Most traders collect dozens of indicators under the belief that the more they have, the better it will be. In reality, too many indicators normally consist of contradictory signals and create confusion rather than clarity, the most successful traders typically have some well-known indicators and price action as their primary weapon.
Treating Trading as Gambling
The mistake of considering trading as gambling rather than being a business is fundamental and affects all the other aspects of trading. Traders who approach Quotex with a gambling mindset are keen on the excitement and speedy profits potential and not on the development of skills and risk management. Adverse decision-making, inadequate preparation, and failure are the consequences of this mindset. Treating business as trade involves keeping things in detail, learning in a regular manner, and making decisions based on logic rather than emotions.
Failure to Prepare Before Trading Sessions
Failure to prepare correctly before trading sessions is surprisingly common. The majority of traders launch the Quotex platform and proceed to trade without preparing or analyzing anything. Being reactive in this way often creates poor choices and missed opportunities. Successful traders typically take time before each trading session to analyze market conditions, decide on potential opportunities, and review through their trading plan.
Unrealistic Expectations
A lack of being able to maintain realistic expectations will lead to disappointment and faulty judgement, most first-time traders have unrealistic expectations of immediate success and unabating profit, leading to frustration when experiencing normal losing streaks. Having an understanding that trading is a skill that must be learned over time and that loss is a natural part of the learning process maintains psychological balance and does not encourage counterproductive behavior.
Inability to Learn and Improve
Finally, the inability to learn and continue to better yourself is a veiled yet essential mistake. Markets shift, new opportunities evolve, and your own circumstances shift over time. Non-learners who do not maintain their skills will find their performance decaying over a period of time. Successful trading requires ongoing learning, ongoing assessment of your own performance, and willingness to follow along with shifting market realities.
Conclusion