Common Mistakes Made by New Traders on the Tauro Markets Trading Platform

Trading with Tauro Markets can be a lucrative way to make money, but it's important to remember that it's also a risky endeavour. New traders at Tauro Markets are especially vulnerable in committing trading blunders, which can lead to significant financial losses. Here are some of the most common mistakes made by new traders, listed out by Tauro Market’s ‘education & training team’:

1. Not having a sound trading plan. A trading plan is generally a roadmap that outlines our customer’s trading goals, risk tolerance and entry and exit criteria. Without a trading plan, novice traders to the Tauro Markets trading platform are more likely to make impulsive trades based on ‘emotions or gut instinct’.

2. Overtrading. Overtrading at Tauro Markets is when our customers make too many trades in a short period of time. This can lead to high commissions and losses. We always advice our clients to be patient and wait for the right trading opportunities to present themselves.

3. Not using stop-loss orders. A stop-loss order is an order toautomatically sell an ongoing trade when it reaches a certain price. This can certainlyhelp our customers to limit their losses on losing trades.

4. Risking too much money on a single trade. It's important forour customers to diversify their portfolio and risk no more than 1-2 per cent oftheir capital on a single trade. This will in-turn help them to stay afloateven if they experience a string of losses.

5. Trading without understanding the market. It is vital for ourcustomers to do some elementary research and understand the markets they are tradingbefore placing any live trades. This also includes understanding thefundamental and technical factors that drive price movements as well.

6. Letting emotions control the trading. Emotions like fear,greed and hope can cloud trader’s judgment and lead to poor trading decisionson the Tauro Markets trading environment. It's important to stay disciplinedand stick to the trading plan, even when it is perplexing.

7. Not tracking active trades. It's essential for our customersto track active trades so that they can learn from their past mistakes andimprove their overall trading performance. This includes tracking ‘entry &exit prices’, ‘win/loss ratio’ & ‘profit/loss ratio’.

8. Following the herd. It's critical for Tauro Markets customers tothink for themselves and make their own trading decisions. We do not recommend blind-followingother traders, even if they are successful.

9. Revenge trading. Revenge trading is when our customers make atrade to recoup their losses from a previous trade. This is a dangerouspractice that can lead to even bigger losses for our customers.

10. Giving up too easily. Trading with the Tauro Markets platformis a challenging profession, but it is also a rewarding one. We encourage newtraders not to give-up too easily, if they experience some initial setbacks. Theyneed to keep learning and improving their trading skills and eventually achievetheir trading goals.

Here are some tips for avoiding the above-mentioned common mistakes:

• Develop a trading plan and stick to it. Trading plan should include entry and exit criteria, plus a decent risk management strategy.
• Be patient and wait for the right trading opportunities to present themselves. Do not overtrade  or make impulsive trades.
• Use stop-loss orders to limit monetary losses.
• Diversify portfolio and risk no more than 1-2 per cent of the capital on a single trade.
• Do research and understand the markets before placing any live trades.
• Keep emotions in check and do not let emotions control trading decisions.
• Track active trades, learn from past mistakes and improve overall trading performance.
• Think for one-self and make own trading decisions. Do not blindly follow other traders.
• Do not engage in revenge trading.
• Do not give up too  easily. Keep learning and improving trading skills until trading goals are accomplished.

By following these tips, Tauro Markets’ trading-platform users can avoidsome of the most common mistakes made by new & amateur traders and increase chances of financial attainment.

To learn more about trading in forex, stocks, CFD’s and cryptocurrencies, you can contact us at marketing@tauromarkets.com