How to Avoid Five Amateur Trading Mistakes

nycsupe

SIGN UP TO BECOME MY PROTEGE AND WORK WITH ME PERSONALLY AND LEARN EVERYTHING I KNOW —>  CLICK HERE !!!

SIGN UP FOR DAILY WATCH LISTS, CHAT ROOM, AND STRATEGY VIDEOS —>  CLICK HERE !!!

I have VERIFIED Over $1,200,000 in net profits already in 2015 and I am sitting on very large unrealized gains on top of that !!!

My Top 5 Students Are Well On Their Way To Be Millionaires !!!

How to Avoid Five Amateur Trading Mistakes

When it comes to being a first-time trader, there are a number of challenges that any amateur will likely face. If you are just getting started in the trading realm it is important to understand that you will make mistakes from time to time. However, it is even more paramount that you understand what the biggest mistakes are and how to avoid them at all costs. Keep these amateur trading mistakes in mind as you work to navigate the waters of the day trading to keep yourself on the best path possible to success.

1. Deciding to Average Down

So many new traders will enter into the day trading realm and start accidentally doing something called “averaging down.” Simply put this is the process of adding a few additional shares of a company you have stock in, at a lower price than you originally bought, in an effort to bring down the average price you paid for all of your shares. This process may work from time to time, but it almost always leads to a large loss. This can be especially problematic for day traders that need to operate in a short window of time.  I am mainly a swing trader, which is anywhere from days to weeks (and occasionally months) as far as length of a position being held.

2. Risking Too Much

So many amateur traders get excited about the prospect of trading, especially when they are starting to make some money, that they will inevitable start risking too much. Many traders have a rule of thumb that they shouldn’t risk more than 1-10% of their capital on any single trade. Different traders may have different rules on that, but the important point is that too many amateurs are risking too much when they get started. Set your limits, don’t risk too much capital and make sure that you stick with your own guidelines.  Going too big, or all in on any one position was the biggest mistake I made when I was learning the stock market.  I teach my students how to properly plan for the position size of a trade.

3. Trading Right After You Hear News

This is a very common problem and fortunately one that you can avoid, simply by not doing it. When news headlines about a particular company or the market hits, countless traders will attempt to make rash trade decisions and hop on board different bandwagons. Avoid this volatile moves, as there is a great deal of risk involved when so many people attempt to make the same move and the stock has already moved on  the news.  This is called chasing, and it can often lead to losses.  I teach my students how to find an entry that is not chasing.

4. Making Emotions Part of the Equation

Ask any expert trader about their keys to success and they will likely tell you about their lack of emotion while trading. You need to be disciplined and prevent yourself from getting emotionally involved in your trades. Work on keeping your emotions in check. Stop getting emotionally involved, stop worry about being a “loser” or making the wrong choices, and stop wearing your emotions on your sleeve regarding wins or losses. One of the best ways to keep emotions disconnected from money is my making smaller trades, you will be far less emotionally charged over smaller financial decisions than large ones.  I train my students how to control the emotional aspect of trading.

5. Lack of Specificity

There are so many traders that go into trading for the first time, thinking it will be any easy way to make money, no matter what trades they make or companies they invest in. A lack of specialization can be a major issue for amateur traders. Most new traders don’t think about initially specializing, but this can cause a number of problems and make the trading process overwhelming. Pick a strategy, focus on it and work on analyzing this specific strategy  in-depth, it is the best way to make sure you are starting off with smart trades.  My strategy is specific and it is ideal for those that work full time jobs and also want to make money in the stock market while excelling at their normal jobs.

SIGN UP TO BECOME MY PROTEGE AND WORK WITH ME PERSONALLY AND LEARN EVERYTHING I KNOW —>  CLICK HERE !!!

SIGN UP FOR DAILY WATCH LISTS, CHAT ROOM, AND STRATEGY VIDEOS —>  CLICK HERE !!!

I have VERIFIED Over $1,200,000 in net profits already in 2015 and I am sitting on very large unrealized gains on top of that !!!

My Top 5 Students Are Well On Their Way To Be Millionaires !!!