Thursday, November 25, 2010

TRADING ERRORS ........

1. Refusing to define a loss.

2. Not getting rid of a losing trade when it is obviously a loser.

3. Getting locked into a bullheaded opinion about market direction.

4. Focusing on monetary value of trade instead of market structure.

5. Revenge trading to recoup a loss.

6. Not reversing a position when the market is clearly changing direction.

7. Not following the rules of your strategy.

8. Planning for a trade and then not taking it.

9. Not acting on your intuition.

10. Giving back recent gains due to overtrading or inconsistency.

We can learn a lot from the market, and from ourselves, if we would only listen.

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