It is normal not to know what you are doing or not have adequate knowledge when you’re new to something. This is because you might need to gain the necessary skills or strategies to tackle such an experience. The same goes for trading.
New traders tend to make many mistakes they may need help recovering from. Thus, you must be informed about these obstacles you can face as a new trader and the best ways to overcome them. Lance Ippolito is a famous trader.
He operates trading forums where he educates new and upcoming traders on the best strategies to use at the time. Lance Ippolito has highlighted four obstacles new traders face and how best to overcome them.
4 Obstacles New Traders Face And How To Overcome Them
One major obstacle that affects those new to trading is the need for more capital to trade a live account. Money for options trading for example, is meant to be as you can afford to lose.
Thus, new traders that have to put in funds that they cannot afford to lose tend to be emotionally affected by the market wind and overtrade, which are both terrible trading ideas. to overcome this, you can either start your trading with a demo account until you accumulate enough funds for a live account.
You can also save up for a couple of years to gather enough for a live performance.
Lack Of Adequate Focus
According to Lance Ippolito, many new traders particularly face this obstacle. This is mainly because, contrary to what many traders might say on social media, trading is not a bed of roses.
You have to learn to dedicate adequate time and energy if you want to improve. You must keep learning and practicing even when you have made it big-time. It will help to note that every trader became successful in a day.
One of the biggest obstacles that new traders face is their emotions. Many new traders tend to act based on their feelings. This causes them to make many big trading mistakes, such as buying or selling dangerously with greed, optimism, fear, or disappointment.
The best way to overcome this obstacle is to refrain from trading when you are solely in your feeling, says Lance Ippolito. That’s because emotions do not define or control the market. Instead, you should follow your trading strategy. This is your defined plan on how and when to trade.
It would help if you also kept a trade journal to document your journey so that you can learn from your successes and mistakes. Thus, no matter what you feel at any moment, you need to stick to your trading plan.
As important as it is to keep yourself informed, you need more information. Instead of being a Jack of all trades and master of none, you should focus your learning on one subject or field at a time.
You don’t need to learn everything there is to know on trading at a go. Having a set of strategies that effectively work for you is sufficient.