The 4 Biggest Mistakes in Stock and Futures Trading Strategies
Part 1 of 4
NEW YORK (TheGoldAndOilGuy.com) -- In this series I would like to share with you the four biggest mistakes traders and investors make. These cost them time, money and usually self-confidence when trading stocks, exchange-traded funds or futures trading strategies.
The Four Biggest Mistakes
1. Lack of a Trading Plan
2. Using Too Much Leverage
3. Failure to Control Risk4. Lack of Self-Discipline Throughout this multi-part series I will cover the major mistakes, why traders make them and how you can avoid them with your stock, ETF and futures trading strategies. While most books about trading are based on success, I want to talk about the other 90% of traders and trading results -- the dark side of the business. Why? Because if you can avoid the mistakes then success should naturally happen. Trading as your business should not be taken lightly and it's generally the little things (negatives) that make the biggest differences.
Part I - Lack of a Trading PlanRecently to took a free online course by Steve Blank. The program was called "How to Build a Startup". This course was really well done and if you are an entrepreneur then it's a must-do course. I think it took me roughly 10-12 hours (online videos with embedded quizzes). Anyway, Steve teaches you everything you need to know and do before starting any type of business and why so many individuals fail to succeed. The #1 mistake made by traders is because they have no trading plan to guide them through the financial market place. A surprisingly high level of traders enter the market without a clear strategy on how they will trade in and out of the market. Most traders are so excited to start trading they simply skip the process of creating, building and testing a stock, ETF of futures trading strategy before they actually start trading with real money and why there is a high rate of failure.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV