Tag: forex trading investment company

Do you make these common mistakes when trading online?

The ease and flexibility of online stock trading is a boon to traders who are no longer forced to compete in overcrowded stock exchanges. Trading systems and improved internet connectivity have enabled traders to trade and place orders online forex time, without needing to call brokers or place traditional orders.

In some instances, however, traders make mistakes which can cost them money. Trading systems can give you a hassle-free trading experience and complete independence, but that does not mean you should let it run unattended. It is vital that you keep an eye on your system periodically. The trading systems work on rules programmed by users. Here are some common mistakes made by online traders.

The Infamous BTS

You must be a trader who has heard the phrase BTST. Brokers will often mention this term to traders that want to maximize profits and minimize risk. This is only to help cover any broker losses. The broker gets a list of risks signed by the client, which leaves them exposed to risk instead of providing adequate coverage.

Brokers encourage you to trade this way because it allows them to earn daily commissions. If you sell and buy every day, they will only get one commission. But if wait two days then it is just a single commission. BTST trading is not a normal method of trading and should be avoided. Why would you take on all of the risks when you are trying to reduce them?

Penny Stocks are a Temptation.

You may find that penny stocks are attractive due to the low price, but you should be cautious as low prices could be caused by a lack of interest. The majority of penny stocks are used by promoters to manipulate the stocks to their advantage. They use coordinated efforts in order to appear profitable. It is only at this time that penny stocks are active, as they tend to remain dormant or illiquid for most of the year.

The sudden influx of suggestions and tips in favor of penny stock that is sweeping the Internet can deceive traders. The traders are led to believe that penny stocks can generate profits while still offering low prices. You will lose money if you fall into this scam.

Take part in morning frenzy

Early mornings are probably the most volatile times in the market. As a trader you should develop the necessary control so that you can avoid any morning frenzy. You should devote all your energy and time to stock trading if you’re interested in it. It is useless to place an order early in the morning, and then read the stock reports later in the day.

This volatility comes from the large number of orders placed overnight and released in the morning. You would be able to resist this news and order surge if you were an experienced trader. If you’re a novice, you may have placed your order already. Avoid placing such orders, as the price fluctuations will have a significant impact on them.


People make some general errors, such as over-relying on systems or not taking the time to optimize their strategies. These 3 errors show the problems that occur when people start to use the systems incorrectly by altering their trading strategies. After reading about the three mistakes, you will have a better idea of the areas you shouldn’t go into.