How “Not learning” from Trading Mistakes can be Disastrous

By | March 16, 2016 5:12 pm

Someone Rightly said “Those of us who don’t learn from mistakes are destined to repeat them.”

What has happened to Markets in Jan/Feb -2016 was the reminiscent of May 2006. Most of traders had no clue such a big fall can come.

The 11 Most Common Mistakes of a Trader are
1. Not Having a Trade Plan.
2. Not Having Money Management
3. Not Using Stop Loss Orders
4. Taking Small Profits and Letting Your Losses Run
5. Overstaying Your Position
6. Averaging a Loss
7. Increasing Your Commitment With Success
8. Overtrading Your Account
9. Failure to Remove Profits From Your Account
10. Changing the Trade Plan Mid-Trade…
11. Not Having Patience

Most traders are busy focusing on trying to understand what moves the market they will look for lot of figures , chasing news like Fed Policy, RBI Policy , but most of traders do not focus on what causes you to move. 

The single most important thing thats important in trading is what causes you to move. 

This involves knowing the underlying, often subconscious to a degree,  reasons behind your entries and exit decisions. The inner market.

Understanding the connection between your internal state and your behavior is a very effective way to get a handle on repeated mistakes.

In general, P&L is an expression of how well you control your actions, not how well you analyze charts, the market Or more accurately, how well you control your actions when facing the discomfort of uncertainty.

Mistakes become disastrous when we choose not to learn from them.

Not wanting those moments where we can see the truth about our own issues ensures they return again.

4 thoughts on “How “Not learning” from Trading Mistakes can be Disastrous

  1. kiran

    internal market… thanks for showing the light within us , bless u ….with best wishes for more to come … loka samastha sukino bhavanthu

    Reply

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