Trading Mistakes – Nervous? Excited? Impulsive? Sweated? How do you define yourself when asked about your next trade approach in fickle market? Still thinking…..??? The answer should be the Calm approach, where your trade can prove to be fruitful. You should end trade in 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 most common trading mistakes in day to day life. Such small mistakes can be easily solved if the trader consciously put on trade. So it’s time to introspect yourself and avoid most common mistakes for your next trade.
Here are top 10 most common trading mistakes you need to check before taking next trade.
#1 Trade during unstable mind :
You need to be in healthy mind state while trading. Trading need focus and balance 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 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 item. 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 win and loss. If you expect positive result then take the trade, if negative then, skip the trade. This is core concept without which a trader is just a gambler.
Trade Expectancy = (Probability of Win x Reward) – (Probability of Loss x Risk)
#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 trade which is just mere a gamble.
#6 Inappropriate Stop loss Strategy:
you forget to use stop loss, widening it, and cancelling 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 specific goal for trading then you might end up giving profits to the market. The target plan helps you to be 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 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 over analyze it. The trading rules and emotions can be control through this analysis process.
Lastly, if you avoid such small trading mistakes, you will be definitely creating waves and far ahead then most traders. This few small steps can be helpful for you to success in profitable trading career. For more valuable tips and our online courses check www.niftytradingacademy.com or call us on 1800 123 6343.