Van Tarp about deadly mistakes for a trader

 

Van Tarp about deadly mistakes for a trader

The main mistakes of a forex trader, which should be known about, were identified by an expert in the psychology of financial trading, Dr. Van K. Tarp.

All people make mistakes and traders are no exception here. Experienced traders make mistakes less often, beginners much more often.

What is a mistake? It is non-compliance with your own rules. And when you do not have your own written rules, all your positions will be a complete mistake. This is what Dr. Van K. Tarp, the creator of 11 books on the psychology of currency trading and founder of "Van Tarp Institute" a company that supports the development of traders, says.

Lack of own prescribed rules.
As soon as you break one of your rules, you're gonna make a mistake there. But the biggest mistake will be if these rules are not written by you. In this situation, any of your movements on the market will be another mistake.

Forget about trading psychology.
Currency trading is fully made up of psychology and principles. They are the foundation of trading, not a working terminal, currency pair or trading system. A trader does not work in the financial market he works on his own beliefs about the market.

To take trading as a hobby
Trading on the financial market is not easy. It is a full-fledged business, where you need to learn all the time to succeed. The attitude to trading in the financial market, as if to business, will give you the opportunity: to deal with your psychological problems; create your own trading plan, which you will follow unambiguously; explore other forms of the market and create strategies to trade on them; achieve trading productivity with a ratio of one error per twenty trades.

Lack of clear goals
We can't be knocked off the road we're the same way to go. Throw it aside. Prescribe yourself clear and real goals this is half the way to develop your own trading strategy.

Ignorance of different phases of market sentiment.
In terms of value movements, the market may be in several positions. It can be upward and downward trends, flat, strong and weak volatility. It is easy enough to develop a trading system for one specific market state. But it would be very foolish to think that a similar strategy will work on different market conditions. Not to work on mistakes
By analyzing the mistakes you have made, you can avoid repeating them. Learn from your own mistakes, don't just stand there. Install fuses so that their impact on you is kept to a minimum.

Do not reckon with your inner state
Each of us is a living person, with his own emotions and feelings. Naturally, there are many ways to avoid their impact on the trading process. Only for that you should clearly understand them. A serious mistake is trading under the influence of hidden feelings and emotions.

Not to understand the rules of money management
A lot of traders leaked the whole deposit, launching a 100% profitable position of the size, as they say, "for the whole cutlet"? The desire to get a huge profit forces to forget about everything. That's why it's important to have clear goals under which to create your own optimal Money Management rules and never deviate from them.

Lack of understanding that trading is a static matter.
If you are able to understand trading with the help of probability and distribution theory, it means that you will be able to evaluate the possibility of success and create plans that will help you to achieve your goals.