The Top 12 Dumb Things That Traders Do

Here are a dozen dumb things new traders have to learn to stop doing if they want to be a profitable trader.

  1. Being a stubborn bear in a bull market leaves you losing money selling short while simply buying and holding will make you money.
  2. Being a stubborn bull in a bear market cost money because support levels do no hold and all stocks eventually fall.
  3. 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.
  4. Trading an account that is too small will lead to a new trader taking big risks.
  5. Trading your opinions instead of the chart action can be expensive if you do not know the future.
  6. 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.
  7. Keep doing the same type of bad losing trades over and over and expecting profitable results.
  8. Trading randomly instead of systematically. Even if you make money you can’t repeat it.
  9. Trading with no edge gives your money to those that have an edge.
  10. Thinking that trading is easy money is an easy way to lose money.
  11. Letting  your emotions move strongly based on a single trade leads to irrational decisions.
  12. Judging your ability to be a successful trader in just one market environment.