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 Risk
4. 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 Plan
Recently 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.