Ten common investment misconceptions for beginners in foreign exchange gold trading

Why am I the only one losing money when others are making profits in foreign exchange gold trading? Is it really a matter of luck? Most people who lose money have some bad habits, no wonder they can't make money!

This article summarizes the ten common misconceptions of novice forex gold trading, which can help novice forex gold investors avoid unnecessary mistakes.

1. Without clear goals and plans

Many beginners in foreign exchange gold trading do not have clear goals when investing. Have you considered living for what? Why do we need to do foreign exchange gold trading? Many people may say that the goal is certainly to make a profit. That's right, but to make a profit, you always need a funding plan and risk assessment, right? Have you done all of these??

2. There is no timeline for investment

Any successful investment requires a detailed and meticulous plan, going through processes such as investigation, planning, learning, and entering the market. This is also true for investing in the foreign exchange gold market. You should clarify the content of your plan and strictly implement it. For example, investment amount, trading strategy, trading experience, and so on. What kind of situations can be traded, and what kind of situations should not be impulsive, these must be executed according to the plan. 

3. Lack of patience and unwillingness to wait

Investment is different from other things. You cannot force yourself. Successful investors spend 90% of their time waiting! Many beginners do not have a certain strategy before trading, and some investors even enter trading based on their own feelings without understanding what "foreign exchange gold trading" is, hoping to make a big profit. This kind of transaction lacks basic preparation work, only betting on luck, and losing money is inevitable. Be patient and wait, do not trade without signals, and do not engage in uncertain battles. Learning to wait is important, but there are very few people who can do it.

4. There are too many and diverse types of transactions

Having too many and diverse trading varieties can reduce your judgment on trading, greatly reducing investment returns, and investors also need to bear greater risks. In foreign exchange trading, you need to choose familiar varieties and focus on creating 2-3 currency pairs.

5. Using too many technical indicators

In the analysis of foreign exchange gold trading technology, we should achieve the principle of "preferring scarcity over disorder". Having learned more than a dozen techniques but only a superficial one, it's better to focus your energy on researching one or two techniques. Having too many technical indicators can actually disrupt your judgment direction. Mastering one or two technical analyses is enough to increase your success rate in trading, and using too many technical indicators will not make you more profitable.

6. Using the wrong trading strategy

Each trading strategy has its unique purpose, advantages, and disadvantages, and one strategy cannot adapt to all transactions simultaneously. Some strategies are suitable for stock trading but not for futures trading, while others are suitable for futures trading but not necessarily for foreign exchange gold trading. You can still wait for the stocks to be released after being locked in, but can you wait for the foreign exchange gold trading to be released?

7. Listen to too many suggestions

When conducting foreign exchange gold trading, it is very disadvantageous for traders to have no independent opinions. Many novice investors lack the ability to discern important information and tend to rely on the advice of some investment experts, lacking their own analytical judgment. In other words, it's about putting all the bets on others, rather than spending time figuring out what you're really doing. No investment expert can guarantee that they can stably predict every important market trend. Listening to too much advice will only disrupt your own rhythm.

8. Too confident

Conceit is a major taboo in trading, and some traders often become complacent and overly confident in their own judgments due to exploring their specific profit trading strategies. Believing that any transaction will not fail, and this stubborn self emotion can lead to significant losses. Profitable traders are adept at admitting their mistakes and constantly making corrections.

9. Emotional dominance

Many traders are always driven by emotions and make last-minute changes to their plans during execution, resulting in losses. After losing money, you can't immediately reflect, thinking that you've lost everything anyway, and don't care about how many orders you've lost~~As a result, you've lost and sold out!

You should know that your rationality before the investment day is the most reliable; On the contrary, your rationality on that day is the least reliable. Emotional psychology may be present in everyone, but traders must learn how to control themselves without affecting their trading.

10. Want to become a successful person too quickly

Many beginners, seeing others wearing branded bags and watches, are too eager to enter the ranks of "successful people" and aspire to live 20 years from now. Entering the trading market based on one's own feelings without any experience, hoping to make a big profit. This kind of transaction lacks basic preparation work, only betting on luck, and losing money is inevitable. Before entering, humbly learning basic trading methods and analytical techniques is a necessary path for a beginner.