1. Overtrading – Good things do not come often, same goes for trading. When you overtrade, the chances of you losing is higher. Gump and I averages about 3-4 trades per week. When we are trading more than that we normally do, we usually end up with a weekly loss.
2. Revenge – Give yourself a limit of how much you are willing to lose a day. Once you hit that limit, stop any trading activity. When we started trading, we often take revenge on the market immediately after we make a loss in order to “recoup” our losses. We usually end up losing even more for the day.
3. Greed – Same thing goes for how much you want to earn for the day. Once you hit your profit target for the day, go and have fun! Life is not about trading only! Hang out with your friends and families! You do not want to be labelled “no life”.
4. Trading with “gut feel”– Plan your trades well, the person who is well prepared has already won half of the battle. We always plan our trades beforehand therefore we can avoid jumping into trades that are more likely to kill us.
He who fails to plan, plans to fail. – Winston Churchill
5. Letting your profit turn into a loss – Do not hesitate to take profit or cut loss when you notice a change in market sentiment. When your plane is crashing, just jump. Use a trailing stop loss to capture partial profit or at least let your trade break even.
6. Trading more than your heart can “tahan” – Position size should be relative to the strength of your heart. If you can only eat 1 bowl of Ba Chor Mee, do not order 3 bowls and end up vomiting.
7. Trying to trade Forex with Warren Buffett’s mindset – “Rule #1: Never lose money, rule #2: Never forget rule #1” If you follow his rules, you might never get a trade for years and end up wondering why didn’t you improve in Forex Trading.
Alright! That is all to share today! Do share with us what you guys do to make money as a trader too! We are still learning every single day!
2. Revenge – Give yourself a limit of how much you are willing to lose a day. Once you hit that limit, stop any trading activity. When we started trading, we often take revenge on the market immediately after we make a loss in order to “recoup” our losses. We usually end up losing even more for the day.
3. Greed – Same thing goes for how much you want to earn for the day. Once you hit your profit target for the day, go and have fun! Life is not about trading only! Hang out with your friends and families! You do not want to be labelled “no life”.
4. Trading with “gut feel”– Plan your trades well, the person who is well prepared has already won half of the battle. We always plan our trades beforehand therefore we can avoid jumping into trades that are more likely to kill us.
He who fails to plan, plans to fail. – Winston Churchill
5. Letting your profit turn into a loss – Do not hesitate to take profit or cut loss when you notice a change in market sentiment. When your plane is crashing, just jump. Use a trailing stop loss to capture partial profit or at least let your trade break even.
6. Trading more than your heart can “tahan” – Position size should be relative to the strength of your heart. If you can only eat 1 bowl of Ba Chor Mee, do not order 3 bowls and end up vomiting.
7. Trying to trade Forex with Warren Buffett’s mindset – “Rule #1: Never lose money, rule #2: Never forget rule #1” If you follow his rules, you might never get a trade for years and end up wondering why didn’t you improve in Forex Trading.
Alright! That is all to share today! Do share with us what you guys do to make money as a trader too! We are still learning every single day!
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