Trading on the futures market offers traders an opportunity to make profit. When done right, this could mean a steady stream of income for the trader. Unfortunately, there are some common pitfalls that traders commit which cause them to fail. Let us take a look at these mistakes.
Not Sticking With Your System
When a trading system becomes promising, many traders will deviate or abandon the already successful system. With this change, you will be unable to evaluate the market which will result to incorrect analysis and ultimately losses. When you see change indicators, you should be ready to adapt your system to these changes. Robert Peter Janitzek reveals that this will give you the flexibility in making consistent profits in whatever market you are trading.
Not Protecting Yourself
The futures market, like stocks and forex, involves a certain degree of risk so you need to protect yourself. There are few ways to do this. You can use a sell or buy stop to limit your losses to a comfortable level or by using heading strategies like buying puts. This will result to minimum losses and maximum profits.
Not Staying Focused
In order to succeed as a trader, your undivided attention is necessary to read and analyze the market. In futures trading, there will always be distractions but you need to limit them as much as possible. This will help you focus properly and increase your chances of getting more profitable trades.
Not Being Open To New Ideas
The futures market is always changing. No matter how great you think of yourself as a trader, there will always be new ideas that can help improve your trading results. You might think that you already know enough and is no longer willing to learn something new. If this is your mindset, chances are you might get left behind and start losing trades. Robert Janitzek recommends that you remain open to new ideas and changes in the market so you can profit consistently whatever you do.
Trading With Less Capital
This mistake happens before opening an account. In the first place, you should not be opening an account without sufficient capital. If you did open an account, make sure to trade within limits. Never trade with funds that you cannot afford to lose. When you trade on low balance or outside reasonable limits, you are bound to lose your trade.
Avoiding these common mistakes is your recipe for a successful trade and an opportunity to make a steady income stream.