Making trading mistakes is not uncommon. This is especially true for traders that’s just starting out because there is just so much to deal with in the beginning.
But just because I’m saying that trading mistakes is not uncommon, doesn’t mean that making them is okay. We should always strive to make as little mistakes as possible and also have measures in place to make sure we don’t repeat mistakes.
Some common trading mistakes are:
- Poor / no preparation
- No trading plan
- Deviating from trading plan
- Trading too large
- Adding to losing trades (averaging down)
- Not sticking to stop losses
- Not keeping track of important events / news
- Constantly watching active trades / charts / P&L
- Cutting winners too soon
- Moving stops to breakeven too soon
- Buying, trusting and trading cheap Robots / EAs
- Acting / trading on advice from others
Then you can add to the above the more silly mistakes like forgetting to enter orders, forgetting to set alerts, forgetting to manage trades and messing up orders etc.
I’ve made all the mistakes discussed above, and then some. And chances are I will make more mistakes in the future. How do I stay in the game? I do it by risking only a small percentage of my account on any given trade.
Apart from the fact that losses in trading are inevitable, so are trading mistakes. And like I said earlier, it is even more so for traders just starting out. So why would you want to start your trading journey with a big account? Or why would you want to take on too much size on any given trade?
Knowing that there’s a chance of making a mistake, how much are you willing to pay should you make a mistake? How much are you willing to pay for all the lessons the market dishes out? The choice is yours, make a mistake and pay big, or make a mistake and pay small.
Thanks so much for reading. Hope you and your family are safe and well.
Thanks and Regards,
Trading SOS SOS