Here are a dozen dumb things new traders have to learn to stop doing if they want to be a profitable trader.
- Being a stubborn bear in a bull market leaves you losing money selling short while simply buying and holding will make you money.
- Being a stubborn bull in a bear market cost money because support levels do no hold and all stocks eventually fall.
- Risking your entire trading account on one trade will leave you with no account when you are wrong just a few times in a row.
- Trading an account that is too small will lead to a new trader taking big risks.
- Trading your opinions instead of the chart action can be expensive if you do not know the future.
- If you think that a trading guru has a crystal ball and follow them unquestionably you will learn that they don’t know the future either.
- Keep doing the same type of bad losing trades over and over and expecting profitable results.
- Trading randomly instead of systematically. Even if you make money you can’t repeat it.
- Trading with no edge gives your money to those that have an edge.
- Thinking that trading is easy money is an easy way to lose money.
- Letting your emotions move strongly based on a single trade leads to irrational decisions.
- Judging your ability to be a successful trader in just one market environment.
