TOP 10 TRADING MISTAKES THAT WE ALL MAKE 🧵

We all make mistakes but what's most important is to correct them at the earliest opportunity and learn from them. Image
1. NOT UNDERSTANDING TRADING AS A BUSINESS

Most of us treat trading just like a hobby~ When it's not or maybe even if it is, it's a pretty expensive one.

We can acquire knowledge acquire experience but the lack of professional business approach doesn't make it last long.
2. TREATING TRADING LIKE A GET-RICH-SCHEME

Trading requires skill that takes time to learn. It's not like winning lottery or inheriting money.

There are no shortcuts to it.

By consistent hard work and practice; Find a method that you know inside and out & execute objectively.
3. PRESSURE OF SETTING FINANCIAL GOALS IN A TRADE

Being a trader comes in with a lot of self-awareness.

Until we know ourselves, we can't really strive to make a specific amount.

Or we'll fall into traps & lose it all.

Have patience, discipline & know what works for you.
4. POSITION SIZING & SL

This is where we open big trades each time.

While it could make a lot of money, it also exposes us to heavy losses.

Having a mental SL is the worst thing we do to ourselves & let our a/c bleed.

Avoid leaving trades unprotected. Trade what you see.
5. NOT KEEPING A RECORD

Success doesn't come in without practicing, planning or evaluating your trades & psychology that follows.

We tend to skip journaling not realizing the fact~ it helps to track our progress & learn from the mistakes we made when entering/exiting a trade.
6. AVERAGING ON LOSERS

We have a tendency to not only hold on to our losses but we try to bring down the cost price by averaging the losers.

In the hope of squaring off at break-even we collect and hold all such stocks that we never thought we'd invest in.

Ride your Winners.
7. FOMO

Emotions are a key driving force behind FOMO.

It stems from the feeling that other traders are more successful.

It causes high expectations, lack of perspective, overconfidence/little confidence & an unwillingness to wait.

Be aware of the triggers and drive it out.
8. SCALING UP TOO FAST

The rule is~ Never scale up based on a one-off scenario.

Once we get early success we try to become rich quickly & embrace too much of leverage.

Initially, We got lucky or maybe just gained false confidence. What now?

Have a plan rather than hot moves.
9. ABANDONING STRATEGIES QUICKLY

Trading psychology or an unreliable process is why we quit our strategies too fast.

Furiously shifting from one strategy to another will only make the returns worse.

Let the strategy/system develop & monitor the results before making decisions.
10. APPLYING WHAT HAPPENED YESTERDAY TODAY

The market is usually a dynamic place where things change regularly.

The sooner we understand it~ the better.

You can avoid this by looking the market & at what it indicates rather than basing out your choices out of no where.
Just like a child doesn't learn to ride a bike without taking a few falls. No trader is perfect.

The key to successful trading is:

~To identify & stick to an effective trading strategy/system.

~Never underestimate the market.

~Keep a detailed journal.

~Learn constantly.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Gurleen

Gurleen Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @GurleenKaur_19

17 Aug
Trading Psychology 101 🧵

If you're new to the field and trying to make sense out of out, good.

The charm of seeing numbers flickering on your screen can be exciting and shattering at the same time.

The ability to hold these emotions from the beginning will give you an edge.
When you're just starting, It's tempting. The thought of conquering it all in a day just gets imprinted on our brain.

Because of this, The risk of overdoing pops in. Stick with what works for you and keep adding in along the way.
Be self-aware, Know yourself and develop a system that tunes in with your personality and risk appetite.

Let's say If you can manage many open positions and make adjustments at a quick pace, you might want to give scalping technique's a shot.
Read 11 tweets
16 Aug
#Afghanistan Humanitarian Crisis
#TalibanTakeover

My heart goes out to citizens of Afghanistan and personnel who are stranded and suffering in this endless conflict.
US was going to withdraw from the region, it was known and negotiated for many months.

It's immaterial whether USA's assessment of Taliban's strength was wrong or deliberately misleading.
This hasty poorly planned withdrawal of troops, closure of US embassy will send spine chilling signal to US allies all across the world from Ukraine to Taiwan to Japan.

This sudden change of events will weaken US brokered peace in middle east, embolden China in South East sea
Read 6 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

:(