Part of becoming successful in any endeavor is avoiding any unnecessary mistakes. Think of it this way, if you’re trying to get from point A to point B wouldn’t you get there a lot faster and more efficiently if you didn’t make any wrong turns? What follows are some of the, “wrong turns” that are common among beginning traders.

Trading without adequate capital – This is one of the most common mistakes that beginning traders make. The concept of adequately funding a trading account seems difficult for some to grasp. Many beginners simply wish to minimize the amount of capital they open their account with. In part this may be due to a lack of confidence. This could easily stem from the fact that some beginning traders jump the gun and open an account without being prepared to trade. In that case it certainly makes sense to not put too much in the account. Deep down inside unprepared traders realize that whatever amount of capital they place an account will most likely be lost.

Trading without a plan – I’m sure I sound like a broken record when I warn against trading without a well thought out trading plan. Don’t fall into the trap of believing that you can succeed without a trading plan. Remember that planning to be a successful trader is a lot different than hoping to be a successful trader.

Lacking patience – We’ve all heard the saying that, “patience is a virtue”. In trading patience is absolutely essential to your trading success. When you are starting out, it’s common to want to make as much profit as possible in the shortest period of time. This causes some beginning traders to try to “force” things to happen. These traders will sometimes take trades not dictated by their trading system in an effort to “feel the rush”. Keep in mind that the markets are ever-changing and are presenting opportunities for profit at any given moment. Also remember the trading is a marathon, not a sprint.

Inability to be wrong – Unfortunately, this particular, “common mistake” is common among people in general, not just beginning traders. Let’s face it, in trading every trade is not going to be a winning trade. Successful traders certainly realize this and that is one of the reasons they are successful. No effective trader believes that their trading method is infallible.

Not controlling risk – Risk control is at the heart of effective trading. Proper risk control can keep you in the game even when your trading system is not in sync with the market. In this case risk control allows you to preserve working capital. When your trading system is in sync with the market proper risk control is instrumental in growing your equity.

Not doing your homework – It is easy to see why many beginners rush into trading in an unprepared fashion. The markets are very exciting and the lure of profiting in the markets causes many would be traders to leap before they look. Doing your homework and analyzing the market is important not only when you’re starting out, but also as you are growing as a trader.

The list of common mistakes among beginning traders goes on and on. What we’ve just reviewed are a few of the most common ones. Avoiding these common mistakes will help you grow as a trader.