There are many mistakes that traders make. I feel as though I’ve made them all at some point.
Here I discuss the 4 Fatal Trading Mistakes that you must avoid in order to achieve success in the stock market. They include:
Mistake #1: Listening to Gurus.
Hone your skills and listen only to the market. You’ll be much better off. No one cares as much about your money as you do.
Mistake #2: Buying at any old time
Just because you researched a stock and like it, doesn’t mean that you need to run out and buy it immediately. You must develop a plan on when you will buy and how much.
Mistake #3: Not having an exit strategy
Just like in buying, we also need a plan for when and under what circumstances we’ll sell. It is possible to lose money on a stock that goes up 100% if we don’t have a sell plan. It isn’t about how much we make…it’s about how much we keep!
Mistake #4: Risking too much
This speaks to the question of “how much to buy” (a.k.a. position sizing). If we buy too much and the stock moves against us, we can easily blow up our accounts. Buy too little and if the stock moves in our favor, it won’t have much of an impact. We need to think of Goldilocks and buy “just right”.
What are the biggest mistakes that you’ve made in the market?
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