9 common trading mistakes that stand in the way of your profitability.
Today we are engaging in the THIRD and FINAL part that is dedicated to mistakes that traders make while trading in any market. In case you missed our first and second part, here are the links to them.
So, let’s see what else can stand in the way of our success?
Mistake №19 – you do not change stop loss and pip amount for different assets.
Mistake №20 – making your stop loss wider on a losing trade.
Mistake №21 – you treat trading too light-hearted.
Mistake №22 – making daily analysis.
Mistake №23 – not doing analysis at all.
Mistake №24 – jumping from one trading method to another.
Mistake №25 – you keep on watching a trade after an exit.
Mistake №26– you are making bald statements.
Mistake №27 – you try to put blame on the ways of trading different from yours.
Mistake №19 – you do not change stop loss and pip amount for different assets.
In case the same stop loss and pip amount have brought you success in three trades in a row there is no reason for this strategy to work for the fourth time. You need to understand the rules of the markets and that I look at each and every trade
with different eyes. Every trade is different and every trade performs differently in the same conditions.
Mistake №20 – making your stop loss wider on a losing trade.
That is a huge NO-NO! In case you see that the trade is failing and you are only spreading your stop loss that is a clear sign that you have clouded mind and need to rest. It is important to realize that accepting a failed trade is a win on its own.
Mistake №21 – you treat trading too light-hearted.
You need to understand that trading, just like any other way to make money is a job. It is your own business as you are working for yourself and no one else. There is no one to fall on and there is no guarantee that you will succeed. And here, just like with any other business right attitude is 50 percent of success.
You need to treat trading like your business with different strategies, approached and innovative idea. You also need to have a kind of accountant-knowledge as well as desire to keep a journal – that is the real key to success.
Mistake №22 – making daily analysis.
Analyzing your performance is a must-do, for sure, but analyzing it every day is not going to get you any closer to success. especially if you have had loss for three days in a row. That is simply going to discourage you and you are not going to see all the plusses offered to you by trading.
Mistake №23 – not doing analysis at all.
Not analyzing your trades at all is just as bad ad doing an analysis each day. In case you ignore your performance’s assessment altogether you are not going to see the mistakes you may be waking on a daily or weekly basis.
Mistake №24 – jumping from one trading method to another.
While it is important to see and try and make your own trading technique, it is also important to know at least one trading method down to perfection. Jumping from one method to another in hopes to find just what you need eventually is not a good approach. You need to stop at whatever method you like and learn it down to a bone.
Mistake №25 – you keep on watching a trade after an exit.
Look, if you’ve made a decision, you’ve made it, if it seemed right at the time to go out of a trade only to see the trade to pick up its pace after you have gone out – let it be. There is really nothing you can do at the moment. Plus, you are only wasting precious time you could have given to another trade.
Mistake №26– you are making bald statements.
In the beginning a lot of trader can get offended when experienced traders look down at their statements like ‘I am going to make $2000 per day’. There is simply no way to assess how much money you are going to make. You can only try and predict what percentage of your trade you are going to see some back.
Mistake №27 – you try to put blame on the ways of trading different from yours.
You can often hear now – earlier it was better, it is all that HFT and algorithm trading that are changing the rules. And that’s exactly it. These new technologies are only changing the rules. Remember our mistake about failing to adapt? That’s it in a nutshell! You need to see the new rules and acknowledge them.
That’s it on mistakes! What do you think about all of them?
