mistakes in trading

10 common mistakes in trading

I would like to talk about 10 common mistakes in trading. New traders are often unaware of what is needed to trade in bad habits that can lead to financial suicide.

1st Under capitalization - One of the first mistake I made when starting to trade was under capitalized. I started with $ 10K account without any idea of ​​how to trade. You have enough capital to learn and gain experience. Some like to call the initial deposit "market education." If you can avoid paying your taxes, great for you. But most new traders lose their money. Just make sure you learn from every loss.

2nd Access it for trading as "learn how to trade" - big mistake. "Learn how to trade" = losing money. Loss of money can lead to emotional and financial stress, and may even create enough fear in you that makes it difficult to trade. Make sure you are ready on the battlefield. Be strategist. Sun Tzu said, "The battle is won before it leads." Think about it.

3rd Trading as a hobby - look at your hobby. Do you make money? Hobbies are fun at that cost money. Not access trading as a hobby. Treat as a business. Developing a business plan, have goals, and understand what you want from trading.

4th Thinking you know it all - in mind when he knows it is the moment when he became a fool. Its impossible to know everything about the markets. This is a life learning process. Find your niche .... Find your specialty and be an expert at it. In other words, find your edge. One thing I learned is that trading in niche = money.

5th Trading without a plan - One of the worst things you can do as a trader to trade without a plan. Trading without a plan is like driving into a new area without a map or navigation system. You are lost.

6th Not by your trading plan - so now you have a good trading plan. Why do not you just follow? A common mistake among traders is not by developed trading plan. This leads to momentum trading or emotional trading.

7th Want to be right - Are you trying to be right? Or are you trying to make money? It's hard to ... I personally have to battle to avoid this bad habit. Our egos stop our trade and tend to want to prove something or someone else entirely. The markets do not care what you think. You are in it to make money.

8th Money Management - Strict money management is a necessity. Set your risk parameters for all your trading setups. A common rule is to risk no more than 2% on a trade. I 1%. To be a long 10 different stocks of 2% risk of trade is not a good idea. In fact risking 20%. Know your size and do not double up his position after a series of losses. Be mill, not cowboy.

9th Have realistic goals - Too many traders come into this arena without unrealistic goals. Questions like "Can I make a million my first year with $ 10k bill?" Sure you can ..... but is that really realistic? Focus on making your trading. When you know how to trade the money will flow normally.

10th Sun analyze yourself and your crafts - This poker habit I have. I tend to analyze every losing and winning hand to learn from it. Traders should do it and analyze every trade. Think about it after hours trading and focus on what you can do to improve. Trading is a continuous journey of soul searching as well. Himself and will significantly improve your trading.



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