A common mistake traders make is trying to take too many positions at once.
They believe that a higher number of deals will translate into a higher profit. “If you open positions in several pairs, one of them will win by a large percentage.“
This kind of thinking is so bad it usually leads them to a big loss instead.
Sure, it’s tempting to jump on every bandwagon and hit every stock meme When your friends, trading heroes, and Online trading groups We’re talking about the same fifteen assets.
But if you want to maximize your opportunities and skills, you may want to consider being a little more selective in your trades.
For one thing, he opened multiple positions It eases your capital allocation.
When you are done with your research and are confident in the direction of the price, wouldn’t you like to risk as much as possible per trade?
Don’t reduce your trading capital by 20% just because you wanted a popular asset that could only grow by 10% in the same time period.
Doing many deals also means you spend Less time and searching for each position.
Instead of reading charts and tweets on eight assets, you can perform several chart analyzes, backtests, and talk to insiders about where the prices of the three assets can go.
The more information you have, and the more scenarios you prepare for it, the less likely you are to miss opportunities and make emotional decisions.
Finally, having a lot of open deals Your focus weakens.
Unless you’re using AI, you can realistically focus on only a few opportunities. Preparing for different market scenarios will do nothing for your account if you are not there to execute the trading plan as soon as it happens.
in the end of the day, Our job as traders is to get the maximum return on our capital.
While dealing with trades does not guarantee consistent profits, losses can certainly be reduced and hopefully keep you in the forex game long enough to be consistently profitable.
