We all make mistakes, they are the essential part of learning and improving. They are what makes us better. We have to keep on doing the same thing until we make no mistakes at all. And that is the truth of life.
But we have to admit that some of mistakes are far more serious than the others. Spelling mistakes are not serious when compared to trading mistakes as the latter usually leads to money and confidence loss. And that can really take a toll on our financial future and prosperity. And the most important are the mistakes that we make in the very beginning of our trading – those first couple of months when we are only getting to know the market and when we need our undivided attention on the market and not on the possible mistakes that we might be masking.
So, when starting to trade watch out for these things – they are going to make you lose focus if you pay too much attention to them.
1. You try to research individual stocks.
2. You think too much.
3. You are making comparisons
4. You overlook the opportunity.
1. You try to research individual stocks.
It is natural – this way you can familiarize yourself with one stock only. And you can focus on the performance of one company only – this way your attention does not spread around. Or so you would think.
One of the key elements of trading success is diversification. And having your attention focused on one asset only is going to spoil everything in the long run as you are not going to be prepared to spread your attention to several points and several assets. This means that one or several of your trading accounts is going to be lacking attention. And why having them then?
So, be sure to diversify from the very beginning – it is one of the most important skills that you can possibly have.
2. You think too much.
It is possible that you think too much about what investment to make and what and when is better for you. And I am not saying that you should invest on a whim. You should definitely think before investing. All I am saying that if you see an opportunity or a time for a trade – do it. Use your trading intuition.
There is no better time and place than here and now – it is true for trading as well. It is especially true when you have live trading signals that are going to help you on any asset any time a day.
3. You are making comparisons
DO NOT COMPARE ONE TO ANOTHER. It is especially true when we are talking about assets from different segments of the market. You cannot compare EUR/USD to gold – the charts sure do look different, but it is about everything these two have in common. They perform under different laws and live by different rules and patterns.
Plus, you can’t compare two different trades even with the same assets – different conditions of the market sure do play their role and alter every trade that you execute. Remember about it.
4. You overlook the opportunity.
It is easy – we simply have too much choice if you ask me. And for us it is simple to get lost in all of these choices. And you know what else is simple? To miss the opportunity for a perfect trade. It is especially true if you combine all of the previous entries together.
You are waiting for too long, you are too focused on one asset only and you try and compare different assets to one another. What good is that going to result in? I bet you can guess that even without my help. Try and spread your attention span and try and diversify your portfolio. This is going to help you win in those very important first weeks of trading.
