If you know the pitfalls of trading, you can easily avoid them. Little mistakes are inevitable, such as entering the wrong stock symbol or incorrectly setting a buy level. But these are excusable, and, with luck, even lucrative. What you've got to avoid , however , are the gaffes due to bad judgement rather than easy blunders. These are the perilous mistakes which ruin complete trading careers instead of just 1 or 2 trades. To avoid these problems, you have got to watch yourself closely and stay careful.
Think of trading mistakes like driving an auto on icy roads, if you know that driving on ice is deadly, you can avoid traveling in a snow storm. But if you don't know about the downsides of ice, you might drive as if there were no threat, only realizing your mistake once you're already off the road.
Too many traders are fixed on only 1 market. They may trade only the currency exchange Dollars/EUR, or the E-mini Russell, or the E-mini DJX, or merely certain stocks, etc. While they may feel a certain sense of experience or mastery over this one market, no one, regardless of how experienced they are , can predict what will occur all of the time. These folks are setting themselves up for disaster, because there will necessarily be a point when they'll make a mistake. And, with no variety in their trades, they will lose everything they have worked so hard to gain.
The key to selecting a market isn't to look for one you appear to understand better than the others. That will invariably be something of an illusion. But there is one market it's always possible to depend on: the one which is moving. You know that you should buy when the market goes up and sell when the market goes down. A moving market will invariably be lucrative, even if you've never traded a single share there before.
Pay attention to trendlines, both in the markets where you are already trading and the markets you are considering. If one of your markets is consistently unsettled or just moving sideways, get out of it and move on to another. If you think of profitable trading as sticking not with a market but with a trend, no matter which market it's in, then you?re thinking successfully.
The key, naturally, is that you have got to keep an eye on markets where you are not currently trading. Keeping abreast of your options is as important as watching what you're conversant with. Here's where research and experience come into play. Becoming familiar with numerous markets (and how to find out about them) requires time. But don't let that discourage you. Additionally , don't feel like you have to understand every option at the beginning. Pick a few different markets to literally trade in, but also select a few simply to watch. That way, you'll see how your own trades work, and you may also compare that activity to markets you may not know about (yet).
The sole way to find out about which markets are right and wrong for you is to watch them. Watching a range of markets will give you the data you will need to use when it?s time to switch gears and find that slippery moving trend.
Think of trading mistakes like driving an auto on icy roads, if you know that driving on ice is deadly, you can avoid traveling in a snow storm. But if you don't know about the downsides of ice, you might drive as if there were no threat, only realizing your mistake once you're already off the road.
Too many traders are fixed on only 1 market. They may trade only the currency exchange Dollars/EUR, or the E-mini Russell, or the E-mini DJX, or merely certain stocks, etc. While they may feel a certain sense of experience or mastery over this one market, no one, regardless of how experienced they are , can predict what will occur all of the time. These folks are setting themselves up for disaster, because there will necessarily be a point when they'll make a mistake. And, with no variety in their trades, they will lose everything they have worked so hard to gain.
The key to selecting a market isn't to look for one you appear to understand better than the others. That will invariably be something of an illusion. But there is one market it's always possible to depend on: the one which is moving. You know that you should buy when the market goes up and sell when the market goes down. A moving market will invariably be lucrative, even if you've never traded a single share there before.
Pay attention to trendlines, both in the markets where you are already trading and the markets you are considering. If one of your markets is consistently unsettled or just moving sideways, get out of it and move on to another. If you think of profitable trading as sticking not with a market but with a trend, no matter which market it's in, then you?re thinking successfully.
The key, naturally, is that you have got to keep an eye on markets where you are not currently trading. Keeping abreast of your options is as important as watching what you're conversant with. Here's where research and experience come into play. Becoming familiar with numerous markets (and how to find out about them) requires time. But don't let that discourage you. Additionally , don't feel like you have to understand every option at the beginning. Pick a few different markets to literally trade in, but also select a few simply to watch. That way, you'll see how your own trades work, and you may also compare that activity to markets you may not know about (yet).
The sole way to find out about which markets are right and wrong for you is to watch them. Watching a range of markets will give you the data you will need to use when it?s time to switch gears and find that slippery moving trend.
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