What are the common errors, the improprieties, the lack of attention to proper mores, the p’s and q of trading that cause so much havoc and could be rectified with a proper formal approach? Here are a few that cost one fortunes over time.
1. Placing a limit order in and then leaving the screen and not canceling the limit when you wouldn’t want it to be filled later or some news might come out and get you elected when the real prices is a fortune worse for you
2. Not getting up or being in front of screen at the time when you’re supposed to trade.
3. Taking a phone call from an agitating personage, be it romantic or the service or whatever that gets you so discombobulated that you go on tilt.
4. Talking to people during the trading day when you need to watch the ticks to put your order in.
5. Not having in front of you what the market did on the corresponding day of the week or month or hour so that you’re trading for a repeat of some hopeful exuberant event which never happens twice when you want it to happen.
6. Any thoughts or actual romance during the trading day. It will make you too enervated or too ready to pull the trigger depending on what the outcome was.
7. Leaving for lunch during the day or having a heavy lunch.
8. Browsing Social Media site and not concentrating on trading plan.
9. Trying to get even when you have a loss by increasing your size and risk.
10. Not having adequate capital to meet any margin calls that mite occur during the day, thereby allowing your broker to close out your position at a stop while he takes the opposite side. What others do you come up with?
good one sir. thanks a lot for covering all these things is your trading course.
Thanks All !!
Hope its useful for all!!
Rgds,
Bramesh
Very Good write up. Thanks Sir.
Subscribing to Trial Calls of various advisories which distracts your mind and sometimes suddenly breaking your established strategy based on their calls.
watching news channel and suddenly news came that “Arvind: scales a new high of 295 and you went there to short , which was not at all in your trading plan…You short, Arvind came at 293 , you think you will cover at 285 and suddenly Arvind crossed 300 and you are there sitting Numb…..And cursing watching CNBC
not having a stop loss set. Thats the biggest mistake I have done. or so its a common mistake done by new traders!