Main mistakes traders make that erode their trading account equity.

In the world of trading, there are several mistakes commonly made by traders. These mistakes can significantly erode their trading account equity. If you are a trader, it is essential to understand these mistakes to avoid repeating them. This article will explain in detail the main mistakes often made by traders and provide effective solutions to avoid them.

Main Mistakes Made by Traders

Main Trader Mistkes

Do you believe this major mistake can cause clients to lose up to 100% of your profit?

Is it true that choosing the right broker or trading platform is crucial and one of the most important decisions before you start trading?

You can increase your trading results by up to 300% just by choosing the right platform! Don’t believe it? Let’s look at the scenario below:
Trader A buys 1 lot of gold (XAUUSD) at 2000.00 and sells at 2001.00.

Scenario 1:
Trader A trades on Platform X with the following costs: Trading fee per lot: $30/lot
Swap fee (overnight fee): $5/day
Spread (difference between buy and sell price): 0.40/lot

Spread cost: 0.40 means the actual sell price is 2001.00 - 0.40 = $2000.60.
Thus, the profit from buying 1 lot XAUUSD = $60.
Subtracting the trading commission: -$30/lot.
Assuming the trade lasts 1 day overnight, swap fee: -$5/lot.

The total actual profit is: $25.
A reduction of -75% from the expected profit of $100 to $25.

(Imagine if the trading profit is only $75, then all of your profit will be wiped out due to the fees mentioned above). Amazing, right? Now, do you understand why the profit you make isn't as large as initially calculated?

Let’s take a look at the next scenario:

Scenario 2:

Trader A trades on GIC with an ECN account type (raw spread). This raw spread account means the account directly shows the spread price from the Liquidity Provider without any markup from the platform.

Trading commission: 7 GICT/lot (All trades on the platform use GICT as a substitute for $)

Spread for XAUUSD pair averages: 0.06/lot

Swap fee = 0

Let’s calculate the total profit from this trade:

Spread cost of 0.06 means the actual sell price is 2001.00 - 0.06 = 2000.94.
Thus, the profit from this trade is 94 GICT
Subtracting the trading commission: -7 GICT/lot
Swap fee = 0.

Your total profit is 87 GICT.

Unlike Scenario 1, Scenario 2 shows a profit of $25 versus 87 GICT (a 348% increase from Scenario 1).

So, how can you earn such income? Does the platform you choose significantly impact your trading profits? Absolutely! The choice of trading platform has a great impact on your trading results. This is why GICTrade exists as the answer to traders’ struggles in finding a platform that provides substantial profits. We also have many other advantages that you can enjoy directly on GIC.

Not only does GICTrade give users the freedom to choose their lot size, but it also provides ease and speed of access for its users. The GIC mobile app has been enhanced with technology, allowing users to easily and quickly access various transaction processes, including registration, deposits, and withdrawals. With these new features, the transaction experience on the GIC app becomes smoother and more efficient for users.

In addition to the ECN accounts, GIC’s platform also offers cashback accounts, where every time a user trades, they will receive cashback from the spread fees of their trades.

Another option is to become an affiliate partner on the platform, where you will earn affiliate bonuses from all your affiliates’ trading activities, as well as from your own trading!

Yes, you read that right. You’ll get affiliate bonuses from your own trades! Affiliate bonuses for pro accounts can reach up to 13 GICT/lot, which will greatly affect your trading results. Therefore, it is proven that the choice of trading platform and account type has a significant impact on your trading outcomes.

Apart from costs, the platform you choose must also be legally clear, and you should check how easy it is to contact them. Do they have customer service or representatives in Indonesia, or an official Telegram group, so if you need help, you can easily reach them?

Don't just choose a trading platform because "my friend uses it," but instead, be wiser in selecting a platform moving forward!

GIC platform is the first P2P Forex Trading platform in Indonesia with blockchain technology, where clients can choose to be traders or Market Makers ("bookmakers"), removing the classic conflicts of interest found in conventional brokers.

Conclusion

In trading, mistakes can have significant effects on your trading account equity. Therefore, it is crucial to understand and avoid the common mistakes traders often make.

By having a clear trading plan, implementing good risk management, using proper analysis, avoiding overtrading, managing emotions well, and continuously evaluating and learning, you can increase your chances of success in the trading world. Remember, mistakes are part of the learning process, and with patience and dedication, you can become a successful trader.

Enjoy easy trading & take profit all within one app. Register now!

This page was last update on 12 Nov 2024 22:07