9 common trading mistakes that stand in the way of your profitability.
It is common knowledge – if you are aware of something you can easily fix it, by putting enough effort into it. And for us as traders it is important to understand the mistakes that we make during trading in order to fix them and be profitable.
This article is going to point out the most common trading mistakes, by trading which you are going to become more profitable at once.
Here is what we are going to discuss today as the FIRST PART OF OUR TRADING MISTAKES-DEDICATED WEEK.
Mistake №1 – not anticipating all of the scenarios.
Mistake №2 – failing to keep an eye on the recent news.
Mistake №3 – refusing to adapt to the new situation in the market.
Mistake №4 – measuring your success in pips.
Mistake №5 – setting absolute and unrealistic goals.
Mistake №6 – changing your trading strategy after a losing streak.
Mistake №7 – listening to everyone.
Mistake №8 – putting on too high expectations.
Mistake №9 – having a not-your-size account.
Mistake №1 – not anticipating all of the scenarios.
As a trader I have to say that it is difficult to always see the whole picture. but in reality that is what expected of us after all. We have to always anticipate and foresee even the smallest bumps in the road – bad internet connection and fail of the network right in the middle of you trade; dip in the market; bad political and economic news – everything has to be in our span of attention.
Mistake №2 – failing to keep an eye on the recent news.
That one is one of the biggest and most common reasons of fails in our case. Absolutely any piece of news can become a reason for the market dip. That is why we have to be one of the most informed group of people on the planet – our money is at stake.
Mistake №3 – refusing to adapt to the new situation in the market.
Markets are constantly changing. That is why new situation in the markets is pretty much a constant state for us. But there are times when everything goes so smoothly, that when the situation changes we refuse to adapt to it, as we just want everything to stay the same. And while it is totally human, it is also pretty dangerous and can come off as stiff.
Mistake №4 – measuring your success in pips.
Here is an interesting piece of info – pips are not really relatable measure of your trading success. They are totally random and have no real value in terms of profitability
Mistake №5 – setting absolute and unrealistic goals.
$2000 per-day profit. Sounds good, right? Right! But is it that achievable though? Think about it and remember – to win big you have to play big. In case you are ready to see your assets go up in losses then you can surely put down trading goal as big as the one we’ve mentioned.
Mistake №6 – changing your trading strategy after a losing streak.
You have worked hard you came up with trading strategy that brought you a lot of profit. But right now you came across losing streak. Did your strategy go bad? Do you need to change it? Well, in this case it seems that the situation in the markets
seized to go well with your strategy. But that doesn’t mean that it is not going to go back to a favorable one. Any losing streak is coming to an end sooner or later.
Mistake №7 – listening to everyone.
So, your college roommate/new colleague/your wife’s barber’s husband found out you were trading and now all of them suddenly have an opinion that they absolutely have to give you for you to implement at once. Well, while you can listen to them as a courtesy, that doesn’t mean that you need to take advice from absolutely everyone. Take my word for it.
Mistake №8 – putting on too high expectations.
“Any day now. I will become filthy rich any day now” – that is just destructive thinking. Fix on today’s trades and do not let your ego and/or greed get to you.
Mistake №9 – having a not-your-size account.
Too big or too small accounts are only going to bring you more harm. The too0big ones are also going to eat up more of your money as you are going to have to support it, so stick to whatever feels more comfortable.
That’s it for the first day of our week. What mistakes did you make while trading? write in the comments and stay tuned for the entire week!
