95% of new traders fail — don’t become one of them! Avoid these 4 common mistakes and set yourself up for trading success. Find out what they are and how to overcome them below:
Lack of a trading plan.
It’s a vital roadmap for trading success.
- Create clear rules for entry and exit.
- Backtest your strategies.
- Stick to the plan.
Your trading plan is what will keep you objective.
Ignoring risk management.
This is similar to sailing in a storm unprepared.
- Limit how much you risk per trade.
- Use stop losses.
- Use the ATR indicator for dynamic risk control.
Risk management will help to keep you in the game.
Giving in to emotions.
Emotions are the silent “destroyers” of trading accounts
- Identify your triggers.
- Develop coping mechanisms.
- Practice discipline.
Command your emotions, don’t let them command you!
Overtrading
This is a trap that will drain your account to zero, fast.
- Set limits for how many trades you hold.
- Focus on quality over quantity.
- Avoid trading during market consolidation.
Good trading opportunities don’t come every day.
To learn more about How you can Start Trading for a living, sign up below for my Free Training on the “7-Steps to Financial Freedom through Trading”.
