Monday, April 20, 2020

Top 5 Mistakes Made by New Traders - Fourth play

Top 5 Mistakes Made by New Traders - 4th play

Here is the link.

This video will be particularly useful for novice traders. Peter Martin utilises his solid experience on financial markets to identify the top five most frequent mistakes made by new traders. Don’t miss out on this opportunity to learn what costly errors you surely want to avoid in your trading.


5 common mistakes

  • No. 5 Failure to get familiar with the market
  • No. 4 Lack of discipline
  • No. 3 Trade without a plan
  • No. 2 Ignore loss transactions - pay insufficient attention to bad trades
  • No. 1 Take on too much risk

No. 5 Failure to get familiar with the market

Failing to do:
historical price range, volatility
Demo trading account without any risk level, build up some experience

No. 4 Lack of discipline

Think of your heart, instead of thinking of your head

Professional one - Dispassionate

- new trade, on a whim - throw away trading rules
Classical
Move the stops away - ?

No. 3 Trade without a plan


Several elements in a plan
entry level
when to enter
whole journey of trade

What kind of strategies suit for you

Exit strategy, exit plan - when to get out, maximize the profit; or this is wrong, cut the loss.
When to decide that it is wrong, I need to exit
Which market you should stay
breakout strategy
Trading plan - stick to

Positions size rule - consistent - how much market moves, volatility

Trade small size as now

No. 2 Ignore loss transactions

- pay insufficient attention to bad trades
get rid of them - you do not...weeds in the garden,

Bad trades like weeds in the garden

No. 1 Take too much risk

Long term - initial too big
Position your size - win the game - stay in the game



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