Common Mistakes Encountered When Entering Orders
Only Focus on the Nearest View
A common mistake many people make is to only look at the nearest signals, meaning they only pay attention to the current price range to make order decisions. This can cause you to overlook the bigger picture and miss opportunities for better decision-making. Always remember to observe both the larger trend and important long-term factors.
Reverse the Order After Hitting Stoploss
Many people, after hitting a stoploss, will immediately look for ways to enter an opposite order to the previous one. The danger is that if the opposite order goes in the right direction and hits TP, you will easily think that 'that was the right decision.' However, this can easily lead you to continue trading on impulse and overlook the established method, resulting in worse trading outcomes.
Cut Orders When Price is Sideways
After entering an order, if the price is sideways, your account may fluctuate from green to red, then back from red to green, and vice versa. This can easily make you anxious and decide to close the order, accepting a break-even or slight loss. However, if you have entered the order correctly according to the established method and observed carefully, cutting the order in this situation should only be done if it is within your strategy. Do not let emotions dictate your trading decisions. Otherwise, it is very likely that after closing the order, the price will continue in the right direction and hit TP.
Important note:
Do not let emotions dominate trading: Once you have a clear and suitable trading method, trust it and patiently wait for results. Do not let emotions overshadow rationality and lead you to change strategies mid-way.
Close the order only when there is a valid reason: Closing the order when the price is sideways is only correct if it aligns with your method, do not act on impulse.