9 Deadly Trading Mistakes You Can Avoid INSTANTLY
Some people may have had you believe that trading is quite simple even for the novices. And there are also few of those who exaggerate the trading market, making active trading looks like some kind of mythical jargon of marvel proportion that’s completely out of non-prodigy crowd’s grasp.
The fact is that trading is easier for people who are smart in making decisions and difficult for those who forgo the basics and don’t learn from their mistakes.
Are you an active trader?
Are you struggling to make decent profit?
Here are 10 deadly trading mistakes that are holding you reach your goals—10 deadly mistakes that you can avoid instantly:
1. Having unrealistic expectations from your trading
You won’t make millions in a week in trading. Period. The idea of fortnight millionaire is flawed. So having unrealistic expectations and goals is one of the biggest mistakes that will take away all your rationale in making important decisions.
2. Being too fearful or greedy
Some people sell prematurely when the price drops, fearing higher loss. And there are also those who stick to stock even when the return is quite high, greedy-ing more profit. Avoid being too fearful or greedy, but base your trading decisions on fundamental and technical analysis.
3. Thinking too much about the past losses
So you have incurred big losses in the past? How will over-thinking about that right now help you? Move on and focus on what’s coming. Don’t let the past trading losses cloud your current judgment ability.
4. You trust news blindfold
Trading market is filled with hypes and false news. So if you turn on your TV or website and believe everything mentioned there about Forex and Stock market, you’re making a big mistake. See the source of news and use your own analytical skill, and then only buy or sell stock accordingly.
5. You don’t have a definite trading plan
You don’t have a plan; you don’t know how much money you should put in the stock; you have no stop-loss and take-profit points; you’re trading vaguely. These all have ‘fail’ written all over them.
6. You don’t have risk management strategy
Risk management is very important; sadly, many people don’t prioritize it. If you don’t know how to anticipate and avert risks, you’ll have plentiful of obstacles on the way. Avoid break-even stop-loss point, have long-term perspective, and compare analyze and reward/risk ratio.
7. You’re a victim of analysis paralysis
This is the problem of the new traders in particular. They think too much before buying and selling the stocks. It’s a mistake. It’s what we call ‘paralysis by analysis’. The market changes fast; so being on your toes and making quick decisions is important.
8. Not preparing for the worst
Yes, you need to prepare yourself for the hypothetical situations. What if you suffer major loss? What will you do if the price of the stock drops significantly tomorrow? Know what bad can and prepare yourself accordingly.
9. You have daily performance targets
Having long-term goals is very (very) important. Advised by every top investor! You must have the big picture in your head. Avoid focusing too much on daily performance targets.
10. Not taking it as a business
Even if you’re a full-time professional, you must treat trading as your full-time profession, if you’re looking to make big profit. Nothing is part time here. You must invest some serious amount of energy and time in analyzing the market, and then taking decisions.
These are 10 very common but deadly mistakes that traders make. Avoid them, have a right consultant and trainer by your side, and unlock big riches.