Thread by @learntotrade365

10 Retail newbie traders common mistakes

A small thread.

Retweet to reach maximum traders and if anyone doing this same mistakes which is mentioned below STOP doing from now.

@caniravkaria @hjyadav @rohanshah619 @KillerTrader_ @Traderknight007 @Mitesh_Engr @SandeepKrJainTS

1. Adding Min. 2 to 5 indicators and searching for a crossover in all indicators to take trades. But reality is indicators follow price so understand what buyers/sellers are doing to move the price.

2. Blindly following some moving average crossover without looking at the current price action ( Who is showing strength either buyers or sellers )

3. Just because candle is BIG ( Big red colour candle means SELL & Big Green colour candle means BUY ) remember this is not a trading strategy.

4. Just because Day High/Swing high is breaking BUY & just because Day Low/Swing low is breaking SELL. First minimum look a follow through candle once price breaking high or low then decide.

5. Placing stoploss exactly at Visual reference levels like Day high/low , Swing high/low , Below previous Day's High/low , exactly above/below VWAP, some Moving average etc...

6. Searching for holy grail system or searching for 100% sure shot strategies which doesn't exist. Start understanding trading involves profit/loss.

7. Jumping from one strategy to another. Market cycle changes sometimes in every 6 months or 1 year or 2 year so based on the current market cycle u have to deploy the strategy.

8. Just because banknifty is showing +1000 points thinking that price will not further go Up let's plan a short side trade ( vice versa for -1000 points ) - One of the common Newbie traders mindset

9. Buying Out of money options and thinking to be 2x or 3x . But the reality is almost more than 70% of option strikes expiry as 0. If u really want to trade option choose ITM/ATM strikes

10. Thinking trading is a lottery business and expecting capital to be doubled every 3 month or 6 month. Which is not possible consistently.