Trading appears to be so simple. After all, a price can go up or down so all you have to do is pick the right heading then sit back and wait for the cash to come in, right? Indeed, not quite.
The trading world can be brimming with treat for the people who have large ideas however little in the way of preparation. At the point when badly prepared you will not perceive that trading mistakes are all a part of the learning system and can actually shape you into becoming a fruitful trader.
Legendary Wall Street trader Martin Schwartz shared both the lows and highs of his stellar trading career in his book ‘Pit Bull: Lessons from Wall Street’s Champion Day Trader’. In his typical flamboyant fashion, he recalled how he lost $10,000 within a few hours of putting on his first trade.
Be that as it may, what’s outstanding about this book is the manner by which Schwartz openly examined the trading mistakes he committed, particularly when he was brand new to trading. He details how he learned and remedied those mistakes, and from that point on the rest was history as he became one of the best and famous traders on the planet.
Schwartz’s book is a practical and realistic reference to the most well-known trading mistakes. And there’s no question that most traders – while perhaps not all – would have made or are making the same mistakes at some time.
Making trading mistakes is part of each trader’s excursion. Whether you’re new to trading or regardless of whether you have been trading the markets for decades, chances are you will make some normal trading mistakes.
A portion of these mistakes are more costly than others. And the fact is there are a few mistakes that are hard to accept. And for certain traders, ignoring a mistake and repeating it again and again can spell the distinction between becoming a fruitful trader or a losing one.
To more readily assist both new and experienced traders, we’ve with putting together a rundown of probably the most widely recognized trading mistakes:
- 1) Trading without a trading plan
- 2) Trading too a lot, too soon
- 3) Emotional trading
- 4) Guessing
- 5) Not using a stop-loss order
- 6) Taking too big positions
- 7) Taking too many positions
- 8) Over leveraging
- 9) Revenge trading
- 10) Letting profitable trades transform into losses
- 11) Not tracking trades in a trading journal
- 12) Don’t forget about your investment time horizon
- 13) Being able to accept losses
- 14) Following the crowd
- 15) Trading in multiple markets at once