SKILLS THAT WILL PREVENT YOU FROM DOING MISTAKES
THE WORST MISTAKE YOU CAN MAKE :
To be successful at trading we need to come up with a certain set of rules we will follow each and everyday. These rules are extremely important as they give our trading structure and help us to decide what to do and more importantly what not to do. If you have good solid trading rules and you follow them consistently, then making profits and avoiding large losses will be an attainable goal.
REVENGE TRADING :
Revenge trading comes from one thing and one thing only, blaming the market for your loss. But let's think about this realistically. Who is to blame when you have a loss? Actually we think blame is the right word. The question is who is responsible when you have a loss? One trade really have nothing to do with the other. The market doesn't care or know how much you made or lost in the previous trade. This is one thing you always need to keep in mind at all the times.
WISHING, HOPING AND PRAYING :
If you find yourself wishing, hoping, and praying the market will do something, this is an excellent indication that you do not have a good grasp of the current situation, and it's definitely time to exit the position and re-evaluate. "You can wish and hope that the market will come back, or you can cut your loss and make yourself ready to take the next opportunity."
DOUBLING UP- ADDING TO A LOSING POSITION :
The reason why people add up to their losing position is not because they see another opportunity, but because they don't want their first opinion to be wrong. It is O.K. to add to your position when the things are going your way, but it isn't O.K. to add to your position when things aren't going your way. That is a good rule to have.
GREED :
It is so easy to be greedy in this business. It's easy to think whatever you get, it's not enough. If you have 200 points profit in trade, you want 300 points. If you have 300, you want 400. The lack of being satisfied is a big reason why may people have trouble succeeding in trading. But this make no sense as the outside factors like to use the money to build up a house won't work. BEING GREEDY WILL SHORTEN YOUR TRADING CAREER FASTER THAN ANY OTHER MISTAKE YOU CAN MAKE.
FEAR :
Many times we can sabotge our own trading because of our fears. In many case fear is good and helpful in our lives. But, in trading, it can really be harmful. In a winning trade, a fearful trader will focus his attention on information that the market is going to take his profits away. And in a losing trade, a fearful trader will focus his attention on anything other than what would indicate this trade is a loser.
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FINWAVE
