TradingView is a popular charting platform that’s perfect for traders, beginners and professionals.0It offers various tools and a user-friendly interface that can help beginners navigate the platform even with basic knowledge about trading.
However, even if its interface is easy to use, many beginners tend to make the same mistakes, which affect their trading decisions and reduce the accuracy of their analysis. Although it’s okay to make mistakes, especially for new traders, it’s best if you can identify them as early as possible to prevent them from becoming part of your trading routine.
In this article, we’ll discuss some of the common TradingView mistakes beginners should avoid.
1. Using Too Many Indicators
Many trading beginners think that utilising a lot of indicators can significantly help them achieve better results. Unfortunately, this plan can make things worse. Since a lot of indicators offer the same information, things can get more confusing as you add more indicators. So, instead, it’s best if you can start with a simple chart setup, using a few complementary indicators.
2. Constantly Changing Chart Settings
If things don’t work the first time, it’s not recommended to constantly change your TradingView chart layouts, colours, indicators, and settings. If you do, it can be hard to build consistency in your trades. In addition, if your chart doesn’t work out the first time, you’ll just have to wait for your turn when your plans align with the market conditions.
3. Ignoring Multiple Timeframe Analysis
Another common mistake new traders make is relying on a single timeframe. If you focus on just one chart, you might overlook the trends of the broader market and short-term price movements. On the other hand, if you’re reviewing multiple timeframes, it can help you confirm trends, have a better market context, find more trading opportunities, and make informed decisions.
4. Relying Too Much on Community Ideas
TradingView offers a community of trading ideas where traders can learn with the help of others. However, a common misconception about learning from community trade ideas is that new traders tend to use them without making their own analysis. Unfortunately, although some of these ideas work for others, there are times when they don’t. So, just to be sure, it’s still best to make our own analysis and use the trade ideas just for reference.
5. Treating Indicators as Buy or Sell Signals
Some new traders view indicators as a buy or sell signal that automatically helps them to achieve a good trading experience. However, in reality, indicators are used to support analysis, and not to predict the market movements. Meanwhile, the right way to use indicators is by combining them with trend analysis, price action, effective risk management, and support and resistance levels.
6. Not Learning How Indicators Work
As mentioned, indicators aren’t the solution to all your problems. This is why, instead of using as many as possible, you should know first how they work. It can be easy to add indicators, but as a new trader, you should be aware of the consequences of adding them to your trades. So, it’s best if you can take some time to know how indicators work as a whole and their differences individually.
7. Ignoring Paper Trading
Paper trading is one of the most helpful ways to have a clear view of what it feels like to be a trader. Instead of going straight to live trading, paper trading can be a good practise in learning the features of TradingView, improving discipline, and building confidence without risking your capital.
8. Failing to Save Chart Layouts
Another common mistake new traders make when using TradingView is forgetting to save their layouts after customising indicators, charts, and watchlists. When this happens, it may result in wasted time and lost settings. So, as a beginner, it’s best to make saving chart layouts a habit.
9. Overcomplicating Watchlists
Many beginners often overcomplicate their watchlists. It usually contains too many stocks, cryptocurrencies, forex pairs, and other assets. If you start with an overcrowded watchlist, it may reduce your focus and feel overwhelming. On the other hand, if you have a simple watchlist, it can be easier to navigate the current market conditions.
10. Ignoring Risk Management
Risk management is one of the most important parts of being a trader. It allows you to achieve a successful trading experience. Since TradingView is known for reliable charting features, other traders forget about stop-loss orders, position sizing, risk-reward ratios, and other risk management techniques.
Final Thoughts
TradingView is a reliable platform that’s becoming more popular for new and professional traders. It offers various charting tools and user-friendly features. If used correctly, it can significantly help traders in organising market research, improving technical analysis, and practising disciplined decision-making.
Are you interested in exploring the world of trading with the help of TradingView? Don’t forget about the common TradingView mistakes beginners should avoid to achieve a better trading experience.