Before you open a real live account it is important that you familiarize yourself with the most common mental mistakes new traders make. You’ll probably still make them anyway, but at least you’ll actually be aware you’re making them which hopefully will make easier for you to correct them.
Trading for a living can be a dream come true, but it can also be a nightmare. If you believe trading is easy, you’re done before you even started. Trading is not easy. Trading is hard. Real hard. It’s hard to consistently remain mentally focused and stay disciplined. Know that going in and you increase your chances of success big time.
2. Lack of Emotional Control
Your mind always assumes the worse. It does that to protect you from harm. Because there is a potential that you’ll lose money and all the mental anguish that brings, the mind tells you not to do a trade.
You have to learn how to override this self-protecting mechanism if you want to be a trader. Talk to your mind. Tell it you are fine with doing the trade. Remind it that have a stop placed and you will not be harmed if it doesn’t work out. Convince your mind that in order to make money trading you need to take risks and the risks that you are taking have been carefully planned and measured.