Seven Deadly Trading Mistakes - Part Seven

Seven Deadly Trading Mistakes - Part Seven
by: Harvey Walsh

Mistake Number Seven - Not Taking Action

For every trader who opens a brokerage account and starts placing trades, there must be a hundred more who had every intention of doing so, but for one reason or another, never actually took that step.

It's a blindingly obvious statement to make I know, but you cannot make a profit from the markets if you don't actually start trading them! Why do so many potential traders buy the books, ready the forums, and study the charts, but never actually place a trade? The most common reasons I hear are these:

Fear "I'm worried I'm going to lose to much money".

If you trade on a simulator, you can't lose a penny. Today's technology makes simulated trading more accessible and more realistic than ever. Having a go risk-free will either give you the confidence to take the next step, or will prove to you that trading really isn't your thing. Either way, you've got nothing to lose by trying.

Time "I don't have time to sit in front of a computer all day learning this stuff". There are stocks and futures markets in every developed country in the world. With the wonder of the internet, we can trade them all. That means that when you have some spare time, there is a market open somewhere. There's no need to give up the day job to try out trading.

Money "I don't have enough cash to trade with". As trading becomes ever more popular, and brokers try and reach out to bigger audiences, minimum account levels are falling. If you have a few hundred spare dollars (US), you can start trading. Having said that, never trade with money you cannot afford to lose. If losing your starting capital is going to put you on the streets, you really shouldn't be trading with cash. However, there's no reason you can't paper trade while you save up that pot.

No Confidence "I don't think I can do this, it's not for me". If you really think trading is not your thing, of course there is no point in pursuing it. If however you simply fear that you won't succeed for whatever reason, then you could be missing out on a great opportunity for nothing. Get yourself some free charts and a free simulator, or even a pen and paper, and have a go. If you don't try, you'll never know!

Action: Ultimately, only you can take the next step to becoming a profitable trader. It's a sad fact that many who read this will never take their trading dream further. But those few that do, will be well on their way to success, profit, and trading freedom.

That's the end of this seven part Seven Deadly Mistakes series. I hope you've enjoyed reading it as much as I've enjoyed putting it together.

Has been not only enjoyable reading,but lots of wisdom packed in this capsule......Great Stuff,TA,and thanks!!

Saint

TaTrader:

Yes enjoyed following your threads. The last one "Not taking Action" wraps it up really well - it also reminds me of a joke that heard.

A man would pray every night before going to bed requesting God to make sure that he wins the next lottery.

This went on for several months and then finally God decided to talk to him - and God said "listen its a little bit difficult for me grant you your wish under the current circumstances - but I would seriously consider your request if you promise me that you woluld buy a lottery ticket.

Nautilus

Thank you so much for this, TA Trader.

where is the sixth trading mistake ? rgds, madhur