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Sunday, 6 November 2011

Common mistakes in trading

Traders will commit very common mistakes while trading and will face huge loses. Some of them are

1.Trading for excitement &thrill and trading with a high ego is very common mistake.try to avoid it.

2.Trading with money that can't afford. Some people will take loans and trade for the profit but some times instead profits they face huge loses. Don't be too emotional about money.

3.No trading plans and lack of record keeping. Without certain plans if you trade it is a gambling. Some times gamblers will be the winners but that is not always work.

4.Not cutting losses and not letting profits run

5. Letting small losses turn into large losses.

6.Not sticking to plans and changing strategies.

7.Bottom fishing/catching falling knives.

8.Fighting the trend- shorting bulls and buying bears.

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