Trading Mistakes
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12 πππππππΌππ πππππππ
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1/
Having No Plan
You need to think about why you are trading and set financial goals for yourself.
Is it for:
β’ Extra Money
β’ Career Change
Take the time to educate yourself and figure out what it is you want to achieve.
Having No Plan
You need to think about why you are trading and set financial goals for yourself.
Is it for:
β’ Extra Money
β’ Career Change
Take the time to educate yourself and figure out what it is you want to achieve.
2/ Following the Crowd
Twitter isnβt a place to get your trades.
Following the crowd without doing any analysis or research yourself will definitely get you burnt.
You canβt steal conviction in this game. Itβs important to think about your own trading style.
Twitter isnβt a place to get your trades.
Following the crowd without doing any analysis or research yourself will definitely get you burnt.
You canβt steal conviction in this game. Itβs important to think about your own trading style.
3/
Trading too often
When there are no setups, donβt force yourself to find one.
Trading often doesnβt mean youβll make more.
You only need one good trade to work to recoup previous trade losses.
It takes skill, discipline, and patience to succeed.
Trading too often
When there are no setups, donβt force yourself to find one.
Trading often doesnβt mean youβll make more.
You only need one good trade to work to recoup previous trade losses.
It takes skill, discipline, and patience to succeed.
4/
Emotional Trading
Emotions play a massive role in oneβs success as a trader.
Donβt become attached to a trade. Look at things objectively.
If you having a bad day, week or month. Take time off and reevaluate your strategy.
Emotional Trading
Emotions play a massive role in oneβs success as a trader.
Donβt become attached to a trade. Look at things objectively.
If you having a bad day, week or month. Take time off and reevaluate your strategy.
5/
Not Cutting losses quickly
Yes,
you will make mistakes and lose money. Get used to the fact of losing money
The point is, when the trade goes against you, get out and accept the (L)
Holding onto a trade cause you believe in it isnβt a strategy.
Not Cutting losses quickly
Yes,
you will make mistakes and lose money. Get used to the fact of losing money
The point is, when the trade goes against you, get out and accept the (L)
Holding onto a trade cause you believe in it isnβt a strategy.
6/
Not using Stop Losses
Do you drive a car without breaks?
I thought not.
Then you shouldnβt trade without
stop losses. It is reckless.
Stop losses prevent losses from becoming worse. They are part of risk management.
Make sure to use them.
Not using Stop Losses
Do you drive a car without breaks?
I thought not.
Then you shouldnβt trade without
stop losses. It is reckless.
Stop losses prevent losses from becoming worse. They are part of risk management.
Make sure to use them.
7/
Not Letting Winners Run
Selling too early is worse than cutting losses. Those gains you could have had hit much harder
The trend is your friend,
if a winner has hit your exit price, consider selling some and then ride the wave,
justβ¦
adjust your stop losses higher up.
Not Letting Winners Run
Selling too early is worse than cutting losses. Those gains you could have had hit much harder
The trend is your friend,
if a winner has hit your exit price, consider selling some and then ride the wave,
justβ¦
adjust your stop losses higher up.
8/
Not Having Entry/Exit Points
Decide before hand what the objective is for your trade and then stick to it.
Be strict with yourself.
Have price entry points to buy, add + have exit points to take profits or cut losses.
Not Having Entry/Exit Points
Decide before hand what the objective is for your trade and then stick to it.
Be strict with yourself.
Have price entry points to buy, add + have exit points to take profits or cut losses.
9/
Letting profitable Trades turn to losses.
Itβs difficult to predict tops and bottoms, but plan your trades before you enter them.
Itβs the worst kind of feeling watching gains evaporate and you sit and do nothing
In fact, watching gains disappear is the worst
Letting profitable Trades turn to losses.
Itβs difficult to predict tops and bottoms, but plan your trades before you enter them.
Itβs the worst kind of feeling watching gains evaporate and you sit and do nothing
In fact, watching gains disappear is the worst
10/
Not Recording your Trades
This allows you to go back to previous trade moments and analyze your mistakes and successes.
This is critical, we canβt remember how we were feeling 6 months ago about a specific stock.
Your journal will help you reflect.
Not Recording your Trades
This allows you to go back to previous trade moments and analyze your mistakes and successes.
This is critical, we canβt remember how we were feeling 6 months ago about a specific stock.
Your journal will help you reflect.
11/
Over leveraging
Start with your own money first and what you can afford to lose before you look to use leverage.
We all want to hit it big, but this is dangerous if you donβt know what you are doing.
Margin calls will wipe you out
Over leveraging
Start with your own money first and what you can afford to lose before you look to use leverage.
We all want to hit it big, but this is dangerous if you donβt know what you are doing.
Margin calls will wipe you out
12/
Guessing
If you are buying without understanding why, then you are playing a dangerous game.
Without putting in the work or educating yourself then you are just guessing.
With proper preparation you can set yourself up well.
Learn as much as possible ππ½
Guessing
If you are buying without understanding why, then you are playing a dangerous game.
Without putting in the work or educating yourself then you are just guessing.
With proper preparation you can set yourself up well.
Learn as much as possible ππ½
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