Biggest Trading Mistakes To Avoid
OFFICIAL WEBSITE: IncomeMentorBox.com
If you are sick and tired of losing trades, it might be because you are making big time trading mistakes that you need to avoid. Yes, we here at the Income Mentor Box Day Trading Academy know that this is easier said than done. However, today we do want to cover some of the biggest trading mistakes to avoid, ones which newbies tend to make. We have a great tutorial video included here with tons of useful info to help you start winning those trades!
Trading Mistakes – Investing Everything Into 1 Trade
One of the biggest trading mistakes which newbie day traders are prone to making is to invest all of their money into a single trade. Now, beginners have a tendancy to invest way too much cash into a single trade, or even into a few trades. Folks, this is not going to end well for you. Sure, you might get lucky and win a huge trade every now and again. However, generally speaking, this is one of those trading mistakes that absolutely needs to be avoided.
When you start off as a trader, especially when you do not really know what you are doing, you want to minimize risk as much as humanly possible. If you invest all of your cash into a single trade, or into a couple trades, you are risking everything and hoping that things will turn out well.
Here at the Income Mentor Box Day Trading Academy, if you take our full course, risk management is something you will learn about a whole lot. The fact of the matter is that you want to diversify your investments. This is an old school but reliable trading practice. You want to invest a little bit into a number of trades. The rule of thumb here is that to avoid big losses, only invest 5% to 7% of your total trading capital into a single trade. This way, even if the trade is a loser, at least you won’t bottom out your account. Never put all of your marbles into the same basket!
More Trading Mistakes – Unrealistic Expectations
Another one of the big trading mistakes which beginners always make is that they have unrealistic expectations in terms of results. Newbies will expect to make hundreds of thousands in profits in just a couple days or a couple weeks. Sure, it is great if you like making money, but idealism is very different from realism.
Here, when it comes to this kind of thing, whether Forex, stocks, crypto, or commodities trading, you need to remain realistic. Trading mistakes of all sorts often involve people thinking that they can become filthy rich in a very short amount of time. Yes, this is possible if you are total pro trader and you manage to win all of your trades, but the possibility is slim to none.
Folks, something you will learn here at the Income Mentor Box Day Trading Academy is to keep your goals at a realistic level. Rome was not built overnight, and your bank account functions the say way. You won’t start trading today and be a wealthy aristocrat tomorrow. The world simply does not work this way. Yes, you can slowly work your way up the food chain, but you won’t ever start right at the top.
Serious Trading Mistakes – Beginner Trading ETFs
Yet another one of those big time trading mistakes which many newbies make is to trade ETFs. This stands for exchange traded fund. Now, yes, this kind of trading can be very profitable indeed. However, if you have not yet gone through our Income Mentor Box Day Trading Academy course materials, you won’t stand much of a chance at winning any of these trades.
ETFs, whether they are bond ETFs or stock ETFs, are notoriously hard to win. The charts for ETFs are hard to read, it is hard to predict price movements, and volatility for ETFs is totally off the chart. You need to be a pro to trade ETFs, at least if you expect to make money doing so. As a newbie, you should absolutely stay away from ETFs because they are super risky to trade with. Avoiding trading mistakes as a beginner means staying away from certain types of trades, such as ETFs for example.
More Trading Mistakes – Over-Trading
The next one of the serious trading mistakes that you need to know about is trading too much at once. Yes, this is somewhat related to our first point of investing too much cash per trade, but there is a difference. Newbie traders will make the mistake of thinking that more is better. Ok, so you shouldn’t invest more than 7% of your capital per trade, so this means you can just place 100 trades, right? WRONG!
This is one of those big time trading mistakes that can cost you a whole lot of money. Sure, as a pro, you might manage to have 10 or 15 trades open at once. However, if you don’t really have too much experience with day trading, this can very quickly lead to your downfall.
Simply put, having more than say 5 trades open at once is very hard and risky. The fact of the matter is that you have to keep track of all of your trades at once. What happens if several of them start going downhill, and doing so fast, but you just do not have the skills or speed to keep up? What will happen is more trading mistakes and massive cash losses. As a beginner, something we teach here at the Income Mentor Box Day Trading Academy, is to never overtrade. It is simply not worth it.
Avoiding The Biggest Trading Mistakes – Final Thoughts
So, here we have covered some of the biggest trading mistakes that many newbies make. However, they are not all of the biggest trading mistakes. If you watch the video which we have included here, you will find out about even more big trading mistakes.
Even better, if you join our Income Mentor Box Day Trading Academy, you will learn about all of the trading mistakes which you need to avoid. Our academy only costs $299, and it is a onetime payment with no hidden fees. You will gain access to a plethora of trading lessons, a free EBook, and a free signals provisions service as well!
