10 mistakes in trading to avoid at all cost

Discussion in 'Trade Journals & Stock Tips' started by tradingpulsealpha, Sep 7, 2014.

  1. Peninha

    Peninha Senior Investor

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    Having fun is good, it means that we love what we do, but nothing like making profit and cutting losses when necessary.
     
  2. CandraLovell

    CandraLovell Member

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    І dо аgrее wіth sоmе оf thе tірs hеrе. Аvеrаgіng іntо lоsіng роsіtіоns іs nоt а gооd іdеа аt аll, аnd thіs strаtеgу саn quісklу wіре оut аn ассоunt. Іt іs muсh bеttеr tо gо аll іn, аnd аll оut, уоu wіll mаkе mоrе mоnеу thаt wау, аnd lоsе lеss.


    Тhе 1% саріtаl rіsk іs а соmmоn strаtеgу еmрlоуеd bу trаdеrs аnd wіll рrоtесt уоur ассоunt bаlаnсе. І dо trаdе wіth uр tо 5% mуsеlf, but і аm а vеrу ехреrіеnсеd trаdеr, sо і wоuld nоt аdvіsе оthеrs tо fоllоw thаt lеаd.


    Тrаdіng thе nеws саn bе а vеrу hіgh rіsk strаtеgу іf уоu аrе gаmblіng оn whісh wау рrісе іs gоіng tо јumр, аs іt оftеn whірsаws bоth wауs аnd stорs уоu оut whісhеvеr wау уоu gо.


    Міstаkеs аrе thе rеаsоn оf lасk оf knоwlеdgе. Whіlе еduсаtіоn іn Маstеrfоrех-V Асаdеmу І sреаk wіth trаdеrs whо wаstеd а lоt оf tіmе аnd mоnеу bеfоrе thеу rеаlіzеd hоw іt’s іmроrtаnt tо hаvе bаsіс knоwlеdgе іn fоrех trаdіng. Fоrtunаtеlу а lоt оf іn thіs аrtісlе іs nеw fоr mе. Тhаnks fоr mу еduсаtоrs
     
  3. Parassd

    Parassd Active Member

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    Brilliant advice to the readers, I must say. This is worth recommending to people who keep on asking tips on trading. I'm gonna remind myself to read this post everyday for a week so that the advice gets stuck in my head for good.
     
  4. pumbata

    pumbata Guest

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    This is a very well compiled list of solid trading advice. If I could add just two more small pieces of advice they would be:

    1) Remember that investing is a long-term affair, and that trading frequently not only eats up profits through trading costs and brokerage fees, but doesn't allow your investments the necessary time to grow.

    2) Research, research, research. And don't forget to look for signs throughout the world on whether or not your company/commodity might change positively or negatively in value. For example if you invest in rice/wheat and there are major droughts throughout the Midwest or Asian markets, you can expect the price of those commodities to skyrocket.
     
  5. Brad321

    Brad321 Active Member

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    You must be dispassionate to be a successful individual investor. Many of your points revolve around this. When you fall in love with a stock or a company... you are sunk. When the reason you bought a stock has changed, it is time to get rid of it. Doesn't matter if you are up, down or even on it. The number one mistake is thinking, "I'm too far down to sell". If you have said this... you don't have what it takes to be an individual investor. Turn your money over to a professional while you still have some left.

    Here is a good way to think of it... if you wouldn't buy it today, you shouldn't own it today. The only thing worse than lost money is dead money. Lost money can be made back, but sitting on dead money is death to a portfolio as you lose twice. Not only have you suffered the initial loss, but now you have to factor in opportunity cost by sitting on your dead money.
     
  6. moneyman

    moneyman Well-Known Member

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    Really useful tips especially for beginners in investing business. It is always crucial to remember to be patient and not invest more than you can afford to lose. This thread should be made a sticky thread.
     
  7. cameronpalte

    cameronpalte Well-Known Member

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    Thanks for the great advice, I'll be looking at following this and comparing it to my trades to see what people think of this trade. Thanks for this guide!
     
  8. Determined2014

    Determined2014 Guest

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    Thank you for the advice, especially when you say not to have unrealistic expectations,not to have too much expectations in returns, and refusing to be wrong, those make alot of sense to me.
     
  9. owesem75

    owesem75 Well-Known Member

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    I think you also need to add is "listening to someone else's advice". We all have different plans and intentions when we started trading in the market. You cannot always rely to anyone to do the work for you without actually knowing what you are actually doing. If you let other people make the decision for you.. or follow their advice, there is no one to blame but yourself if the strategy lead you to losses.
     
  10. zuluguy

    zuluguy New Member

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    I've recently started looking into trading and I know before even starting that I could fall victim to many of these pitfalls...however now I know about them I can try my best to not fall victim to them or at least minimise damages in case I don't realise I'm about to make on of these mistakes!

    that is for the great thread op I think I'm going to bookmark it for the time being so I don't lose the thread
     

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