Below are major Qualities a Bad Traders have irrespective of whether he trades in Equity,trading options, Forex trading or commodity trading.
- Bad Traders never manage risk, They always believe in risk free trading. Bad traders have a mind set if they take a trade they will not exit it till they make profit. This attitude leads to doom of a trader as most of them end of blowing of the trading account.
- Bad traders have no stock money management strategy They go all in on one trade mostly in online option trading and it will make or break them.Mostly the trade end up being a losing trades as most of traders are impulsive in nature
- Bad traders indulge in stock option trading like to buy deep out of the money stock options not understanding how bad the odds are on them. They will always think of the money they can make but never ever see the amount of capital they are risking in a particular options trade.
- Bad Trader love directly giving unsolicited advice to other traders without understanding the trade pattern of other traders. Each trader have different trading plans and time frames.
- Bad Trader think trading is the easiest way to get to riches dream. They think ample amount of money can be made in trading. Exorbitant return of 50-100% on monthly basis is normal to them and they think can be achieved easily.
- Bad Trader think traders that talk about risk management and trader psychology are silly and that Bad Trader are above that.
- Bad Trader are very loud about winners but never discuss losing trades.