Trading Behaviors That Destroy Traders

By | August 3, 2015 4:54 pm
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  • Being a Know-it-all: Wanting to be right about everything more than wanting to make money is very unprofitable. It is difficult for many professionals from other fields to take a beginners mind in this new endeavor of trading.

 

  • Not having patience: Trading is a long process of study, testing, mentoring, and live trading you have to see it through from beginning to end to reap the benefits.

 

  • Trading out of fear: Fear makes traders miss entry signals and get our of winning trades too early.

 

  • Trading out of greed: Greed makes traders trade too big and risk too much which causes them to give back their profits over and over.

 

  • Lacking confidence: It takes faith in yourself and faith in your method to produce long term profits. The faith comes from proof in studying the markets and trading your system.

 

  • Lack of discipline: The inability to consistently do the continual work and trade a system is lethal to a traders success.

 

  • Looking for the Holy Grail of trading systems: If new traders spent as much time developing a robust trading system as they did looking for a can’t miss method they would have a much greater chance of survival.

 

  • Wanting to get rich quick: Is a very fast track to blowing up a trading account.

 

  • Never being able to grasp the concept of reacting to what is happening instead of being obsessed with predicting what will happen. There is a big difference between starting with a prediction and working backward instead of starting with a signal and working forward and it is called consistent profitability.

 

  • Trying too hard to prove how great you are as a trader instead of actually focusing on real trading.

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