Most of Traders should have gone through this cycle “they start trading, make good money mostly attributed to beginners luck , then all of the sudden they go in cycle of endless stream of losses.” Eventually they end up blowing off their trading account. Today’s article is focused on most common mistakes of traders and how to avoid them.
Not having a Trading System
Most of traders do not have a trading system trading rules and trading goals. They will keep jumping from one system to another and keep testing new new things, eventually blowing up the trading account. As a trader you need to master your skills set. Gann did not traded for 10 years he used that time to travel round the world and develop his skills. Focus on developing skills and than think about trading.
Not Protecting Yourself
Most of traders look only on bright side of the trade how much will I earn, not focusing on How much will I lose if trade goes wrong. Focus more on the loss and see if you can digest it, if now avoid entering the trade.
Not Staying Focused
To trade successfully, your undivided attention is required to be able to read and evaluate the markets effectively. Sometimes distractions are unavoidable, but you always want to have as few distractions as possible when you are trading. This will help you to focus properly, thus increasing your odds of more profitable trades. Stop seeing Twitter and FB when trade is ON.
Not Being Open to New Ideas
The markets are always changing. No matter how great you think you are as a trader, there’s always a new idea that can help you improve your trading results. Too often, traders get caught up in thinking that they already know enough and they aren’t willing to learn anything new. As the market conditions change, this type of trader is left behind with nothing to show but losses. However, if you remain open to new ideas, you will be able to change with the markets – and profit consistently, no matter what they do.