TradingView is known for its charts, tools, and indicators. Although it sounds easy, many beginners tend to make mistakes that can affect their trading progress, including making poor decisions and slow progress. Some of these include failing to backtest or using indicators the wrong way. Since these factors can significantly impact your trading performance, it is essential to know and understand how to use TradingView effectively before you begin using it.
In this article, we’ll discuss the most common mistakes beginners make when using TradingView, and how to fix them and start crafting reliable trading strategies.
1. Using a lot of Indicators
One of the most common mistakes beginners make when using TradingView is starting to use too many indicators at once. Although it seems like using a lot of tools can help you succeed in your trades, it’s not always the case. On the other hand, it’s even more recommended to keep it simple to avoid having messy charts and conflicting signals. Some of the most common indicators you can start with include RSI and moving averages.
2. Ignoring Price Action
Although indicators are helpful, always keep in mind that they shouldn’t replace price action. Ignoring price action may result in trading without considering market structure. For instance, relying too much on RSI isn’t ideal, and you should have an overall direction, resistance, and support for every trade you make.
Since price always tells the current market condition, it’s best to read the chart first. This can prevent you from making decisions based on tips or your gut feeling.
3. Using the Wrong Timeframe
It’s fine to explore your options, such as switching to low timeframes, which is common for beginners. However, it can also bring negative impacts on your trades. For instance, if you use a 1-minute chart, it might end up giving false signals and noise, which can lead to emotional trading.
It’s common for new traders to feel as if they need to chase quick profits, but it’s recommended to avoid it and practise patience in every trade you make to avoid making poor decisions.
4. Forgetting to Save Chart Layouts
It’s such a waste if you’re not saving chart layouts since it results in losing drawings and indicators, and you’ll need to repeat everything you’ve done again. Aside from wasting your time, this can also prevent you from having consistent results.
So, if you don’t want to be hassled all the time, it’s best if you can have the habit of saving your layout as often as possible.
5. Misusing Drawing Tools
Another well-known fact about using TradingView is the wide range of drawing tools it offers. However, another common mistake beginners make is using these tools incorrectly. For instance, you might force a trendline that isn’t really there. When this happens, your plans might not work out at all.
So, to avoid this, just keep it simple. Avoid trying to fit charts based on your expectations, and let the market guide you to making better decisions instead.
6. Chasing Every Signal
Not every signal you see on TradingView means you should do something about it. In some cases, you just need to wait. However, if you think a signal should be acted upon, it’s best if you can first confirm and avoid being too excited to take action.
If you start training yourself to be patient, you can easily avoid making mistakes and achieve a successful trading portfolio in the future.
7. Ignoring Risk Management Tools
Risk management tools are essential when using TradingView and other trading platforms. However, the main problem for beginners is that they tend to overlook them.
Trading is a serious thing, especially if you don’t do it correctly. And one of the things you can do that can help you become a successful trader is to rely on risk management tools. Sure, you can track your trades manually, and it’s impossible to control them most of the time. Although these tools won’t guarantee gain, they’re helpful enough to handle unnecessary losses.
8. Not Using Alerts Effectively
Aside from using risk management tools, it’s also important that you know how to use alerts effectively. In doing so, you’re allowing the market to come to you. At the same time, they can help in reducing stress, save time, and help you focus on other things, such as decision-making and analysis.
9. Copying Strategies Without Understanding Them
Although copying trading strategies of successful traders can be tempting, that’s not how the world works. Besides, there’s no such thing as a strategy for all. When crafting a trading strategy, you’re also considering a lot of things, such as risks, capital, style, and current market conditions. And if you just copy others’ work, it can be hard to understand why they come up with such a plan.
10. Expecting Instant Results
Last but not least is when new traders expect instant results. Trading takes time. In some cases, some may find it too hard to understand why their strategy won’t work, considering everything else. So, one of the most important things to keep in mind when trading is to be patient.
Final Thoughts
TradingView offers a lot of features that can significantly help you move forward. However, these features should be used the right way to become effective. At the same time, avoid using them all at once because sometimes, it’s best to make things simple.
