10 Bad Habits of Unprofitable Traders:
They trade too much. The edge that small traders have over institutions, is that they can pick trades carefully and only trade the best trends and entries. The less they trade, the more money they make, because being picky gives traders an edge.
Unprofitable traders tend to be trend fighters, always wanting to try to call tops & bottoms. They eventually will be right, but their account will likely be too small by then to profit from the reversal. Money is made by going with the flow of the river, not paddling against it.
Taking small profits quickly & letting losing trades run in the hopes of a bounce back, is a path to failure. Profitable traders understand their risk/reward ratio; big wins & small losses. Being quick to take profits while allowing losses to grow, is a sure way to lose money.
Wanting to be right more than wanting to make money will be an expensive lesson. A trader who doesnβtΒ want to take losses will not reverse his position because it signifies failure. A profitable trader is not afraid to get on the right side of the market to start making money.
Unprofitable traders trade too big, and risk too much to make too little. The biggest key to profitability is to avoid big losses. Your wins can be as big as you like, but the losses must be limited.
Unprofitable traders watch financial news networks for trading ideas. Profitable traders have strategies with an edge.
Unprofitable traders want to be given stock picks, while profitable traders develop trading plans and systems.
Unprofitable traders think trading is about being right or wrong. Profitable traders know that profitability is about cutting losses quickly, and letting winners run for as long as possible.
Unprofitable new traders donβt do their homework because they think there is a quick and easy route to trading success.
Unprofitable traders #1 question is how much they can make if they are right, while the profitable traders #1 concern is how much they can lose if wrong.
Learn the principles of profitable trading: amzn.to
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