Trading Mistakes A Trader/Investor Should Aviod.

munde_77 · #11 2nd October 2007, 10:03 AM

13.Blaming the Market: Don’t blame the market for your losses. You are the sole reason for losses.

14.Adding to a losing Position - Never add to a losing position. It is a prescription for disaster.

ADDING TO A LOSING POSITON........A SURE PRESCRIPTION FOR DISASTER
VERY GOOD ADVISE

hkbhattad · #12 2nd October 2007, 06:47 PM

the 14 safeguarding points can be termed as the 14 comandments of investment.

lallug · #13 19th December 2007, 01:38 AM

thanks for ur tips bro

gvgs98 · #14 19th December 2007, 07:33 AM

Bullet,
You said it right. Honestly, people may not like your truth telling. But good work and keep it up.

Cheers

Quote:

Originally Posted by Bullet

[b]

20.Big movements take time to develop. Stay always PATIENT.

That’s all I have for now, I will add more points which I feel important.

I Hope this thread will be helpful for beginners in the stock market.

THANKS
BULLET

amarnath · #15 19th December 2007, 10:56 AM

Quote:

Originally Posted by Bullet

1.Trading with money you can’t afford to loose: One of the greatest obstacles to successful trading is using money that you really can’t afford to lose. Ultimately what happens is that when someone knows in the back of their mind that they are risking the money they can not afford to lose, they trade out of fear and emotion versus logic and no emotion. If you are in this situation It is highly recommend that you stop trading until you earn enough to put into an account that you truly can afford to lose without causing major financial setbacks.

But in real world no idiot is ready to loose even if its money affordable to loose, simply its money for all

2.Lack Of Research Work: People just jump in. Without having the proper knowledge of the stock or don’t knows about chart or never cares to view chart in the right time frame. They don’t have time to do some research work. They follow tips blindly and then gaze at night sky!

Weather you do some research or not, market randomness never cares you or your position, if reading chart is just a end solution to loss then every forex trader will be millionare, as every forex trader use charts and try to find in and out of it

3.No Trading Plan (don’t know entry, exit, stop loss, profit target): A trader with no trading plan is flying in the sky ready to crash any time. Successful traders always keep their Trading Plans ready before entering into any transactions.

This is easy to be said in paper than done and its what sucessful trading is all about

4.Not Learning From Losses – take advantage of each loss to improve your knowledge of the market.

Its just pure theoritical advice and no one sucessful trader can learn from losses but from others losses not from own

5.Lack Of Discipline- Never allow emotions to rule your trading decisions, which often lead to bad decisions and unacceptable trading losses.

We are not sages to control emotions

and in true sense a greedy speculative mindset cant control them fully, and its just far true from real truth

amarnath · #16 19th December 2007, 10:59 AM

Quote:

Originally Posted by Bullet

6.Lack Of Money Management – Lack of proper money management is a major cause of failure among new traders.
(Out of 10 Trades, if 6 are loser with 5% loss & 4 are winner with 10% PROFIT, Net Results GAIN.)

If trading is so easy ask yourself how rich you are at moment

if even have simple idea of real market conditions were market cant offer you edge to gain 10% fixed out as you wish and market noise always offer a negative edge to most of what you call technical indicators

7.Never Apply STOP LOSS – Most common mistakes made by traders is that they let their losses grow too large. Nobody likes to take a loss, but failing to take a small loss early will often result in being forced to take a large loss later.

True for small retail traders in some sense but stop loss is not a pure academic concept

8.Never Fall In LOVE With A Stock – Many traders fall in love with one or two stock and look opportunities to trade in those stocks only ignoring the other profitable trading opportunities.

Over diversification is a critical factor

Always focus or handle what you can

9.Not Keeping RECORDS – Always keep records of your trading results and analyze the results.

I just love to keep records of tax receipts

10.Over-Trading – Trading in too many markets at one time is a mistake – espically if you are racking up losses.

8.Never Fall In LOVE With A Stock - Many traders fall in love with one or two stock and look opportunities to trade in those stocks only ignoring the other profitable trading opportunities. Then what did you mean yourself before few points here? and like many here are you a COPY AND PASTE SPECIALIST

amarnath · #17 19th December 2007, 11:12 AM

Quote:

Originally Posted by Bullet

There are plenty of points, but important is to study these points and apply it - to save one-self from destructions.

Yes plenty of points to waste bandwidth and time

Contd….

11.Not Preserving Capital: It is the part of money management so as to enable one to live to trade another day.

Its just simple theoritical advice of no use

12.Under funding-Not enough capital to invest (this can sink the ship) know well that there is a minimum amount to be invested.

Yes but there is no golden basis on this aspect but we cant dream to converts 100$ account into 10k $ in a year

13.Blaming the Market: Don’t blame the market for your losses. You are the sole reason for losses.

Other than market which caused such movement whom other a poor looser can better blame ? a tipsters? his bad astrology? his friend? u or me ??

14.Adding to a losing Position - Never add to a losing position. It is a prescription for disaster.

Cost averaging is a part of money managment and position sizing techniques and if you dont know what does it means stop you copy pasting techninques to advice others

15.Not getting a bigger view/perspective on Market – One can look at daily chart for short-term, but by looking at the weekly or monthly chart for longer-term can reveal great secrets of the market.

If you cant even survive hourly or 4 hour noise of market dont even think of looking weekly and just forget monthly even big institutions dont have such deep pockets to trade monthly charts

amarnath · #18 19th December 2007, 11:21 AM

Quote:

Originally Posted by Bullet

16.Trading with a high EGO– A person who do not expect that he would be wrong and refuse to get out of bad trades. This ego becomes the downfall.

Cant we call it self confidence LOL

17.Never use these things - HOPE, PRAYER THAT PRICE WILL MOVE UP

Irrespective of these factors market keeps moving as it wish and atleast prayer may add little good karma so dont give it up :d

18. Ignoring the five basic pillars of trading :

•Trade with trend, - but when u identify it will end
•Cut losses fast, _ but how fast?
•Let profits run, - how long?
•Trade selectively, - how selectively?
•Trade in the major index direction. - Any proof and what you can say about contra trading systems and atleast are you aware what does it means?

19.The key to wealth in trading is simplicity. Avoid techniques you don't understand.

Trading is simple which just take 2 sec to press a button of choice BUY SELL but end result is not easy

20.Big movements take time to develop. Stay always PATIENT.

What about scalping ?And you mean scalper never wins?

That’s all I have for now, I will add more points which I feel important.

I Hope this thread will be helpful for beginners in the stock market.

Yes its enough for now to make a newbie mad and to guide him in best wrong direction in begning which is easy in begning

THANKS
BULLET

-Came out of barrel to kill others in name of advice

amarnath · #19 19th December 2007, 11:23 AM

Quote:

Originally Posted by gvgs98

Bullet,
You said it right. Honestly, people may not like your truth telling. But good work and keep it up.

Cheers

Yes but real truth is far from above copy pasted stuff and dont get fooled yourself

amarnath · #20 19th December 2007, 11:25 AM

Quote:

Originally Posted by lallug

thanks for ur tips bro

you signed up a id just to tell a thanks to above fellow ? i just wonder and have you ever heared of a site called GOOGLE for which you have to say millions of thanks then

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