Trading Mistakes – Nervous? Excited? Impulsive? Sweated? How do you define yourself when asked about your next trade approach in the fickle market? Still, thinking…..??? The answer should be the Calm approach, where your trade can prove to be fruitful. You should end the trade in a simple way and without any mess. The trade should always make you feel proud in your trading career. So, always make it accurate and forward-looking.
Also Read: Safe Rules for Day Trading
We as trailblazers at Nifty trading academy found that trader makes the most common trading mistakes in day-to-day life. Such small mistakes can be easily solved if the trader consciously puts on a trade. So it’s time to introspect yourself and avoid the most common mistakes for your next trade.
Here are The Top 10 Most Common Trading Mistakes You Need to Check Before Taking The Next Trade.
#1 Trade During Unstable Mind
You need to be in a healthy mental state while trading. Trading needs a focus and a balanced mind. So do not trade unless you are in good healthy condition.
#2 Memories of Past Losing Trades
you keep riding on the roller coaster ride of lost trades which means you are eager to regain the same. Always remember that each trade you do is independent. Do not let the result of your past trade affect your current trading move.
#3 Unrealistic Profit Target
you take too much risk and expect high profit in order to buy fancy /luxury items. These steps always ruin your trading portfolio. Don’t welcome trouble with too much target.
#4 Leave Behind Expectancy
you should estimate the probability of winning and loss. If you expect a positive result then take the trade, if negative then, skip the trade. This is a core concept without which a trader is just a gambler.
Trade Expectancy = (Probability of Win x Reward) – (Probability of Loss x Risk)
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#5 Forget to do Homework
you forget to keep track of the news announcements. Without knowing the market reaction to the news you trap yourself into a trade which is just mere a gamble.
#6 Inappropriate Stop Loss Strategy
you forget to use stop loss, widening it, and canceling it and illogical order for stop loss may violate your trade plan. It clearly shows that you are trading out of control.
#7 No Trading Goal
If you don’t have a specific goal for trading then you might end up giving profits to the market. The target plan helps you to be the focus and define when to exit.
#8 Ignore Position Sizing
you ignore the significant rule i.e. position sizing. To reduce the risk level is half trading game while taking good risk is the other half.
#9 Forget Saving Trade File
you forget to record the trade which is an important lesson for every trade. This helps in balancing the emotions and discipline issues.
#10 Over Analyzing Trade
you learn from each trade but never overanalyze it. The trading rules and emotions can be controlled through this analysis process.
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Lastly, if you avoid such small trading mistakes, you will be definitely creating waves and far ahead than most traders. These few small steps can be helpful for you to succeed in a profitable trading career. For more valuable tips and our online courses check www.niftytradingacademy.com or call us on 97247 95247.