Be a successful trader!

successful trader
Erase the obstacles and be a successful trader!

Recent researches show that 95% from the traders lose permanently their ability to earn money in the financial markets. Here are ten mistakes that contribute to their failure.

1. You do not have a trading plan.

When you don’t have a plan, you don’t have goals either. You do not know when to enter or to come out of a particular position. The chaotic trading with financial tools has proved its zero efficiency, and usually it ends in the same way, unfortunately in the positive one.    

2. You use strategies that are not suitable to your personality.

For example the strategy „buy and hold” is not suitable for extremely nervous traders, who do not have patience when market is against them, and at the slightest mistake they are willing to close their positions. They are doomed to failure.

On the other hand, we have traders who are willing to hold their positions till the end when they lose all their money. And oftentimes they have no patience to keep the position when it turns to their direction, they just close it

3. You have unrealistic expectations.

Many people think that it is easy to earn money on the financial market. They have unrealistically high percents in their heads, without realizing the risks they would take. You must have more attainable goals that realistically correspond to the market conditions and trading tools.

4. Taking an extremely high risk.

Unintentionally or without being informed, oftentimes investors take extremely high risks. In the financial theory this kind of behavior is known as the term “gambling”, or the moment when the investor is taking away from the reasonable business. Frequently, when we chase a high profitability, we lose everything.

5. A lack of rules to follow.

Here, we could distinguish two problems – lack of rules, because of lack of experience, or presence of rules, but lack of discipline for their observing. Most of the people consider the rules as limitation. However, your rules should be flexible, which is one of the basic criteria to keep permanently on the market.

6. Lack of flexibility.

In a highly dynamic and constantly changing market conditions, to be flexible is imperative. If you stay at the past and lie on old glory, you are going to lose your real idea of the present world.

7. You do not assume responsibility for your results.

There is always someone guilty, or a couple of “unfair” circumstances for your unsuccessful transaction. Unless you get rid of this way of thinking and start to take warning from your mistakes, you are going to be doomed.

8. You are addicted to volatility.

Large motions in particular positions are your passion. Besides, you are addicted. But you should know that in a high volatility, you take too many risks and the companies’ behaviour is different depending on the situation. A single mistake is able to kick you out of the game.

9. You do not watch your results.

You do not follow your records and you cannot analyse your good and bad transactions, in order to repeat the good deals and avoid the bad ones.

10. You succumb to emotions.

As long as emotions could be advantage in some other branches and entail some good results, in the financial world they are hindrance. Get rid of them as far as possible.

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