Tag: Trading Mistakes

Trading Lessons You Need to Learn

AndyLatest News / Latest News / NewsLeave a comment

Trading Lessons You Need to Learn

If you are a newbie trader then there are so many different things that you need to learn in order to be successful. This is true whether you are day trading, swing, trading or anything in between. And it also applies to all trading types, whether we’re talking about crypto currencies, forex, the stock market or commodities, the fact of the matter is that there are various trading lessons that you need to learn early on in your trading journey in order to be profitable.

Of course, as is the case when we first started trading, we also needed to learn these lessons and unfortunately we had to learn the hard way. Luckily for you, we already learned all of these trading lessons the hard way, so now we can convey all of this information to you so you don’t have to learn the hard way. If you read this article on the best trading lessons that you need to learn, then you can avoid making the same mistakes that all too many beginners make.

Trading Lessons

Trading Lessons for Success

What we want to do right now is to cover some of the most crucial trading lessons for success that you need to know in order to make money instead of lose it.

Consistency is Key

One of the biggest trading lessons that you will learn eventually is that consistency is key. Now what many beginner traders do is to choose one type of trading strategy or one type of indicator and then use that as much as possible. Now beginner traders will often win a couple of trades but then lose many more than they win.

Most traders will then move on to a different trading strategy because they think that the previous one didn’t work. Most traders will bounce back and forth between various trading strategies in the hopes that something awesome is going to come along people. The fact of the matter is that the trading strategies aren’t the problems.

Let’s face it, when you choose a trading strategy, you look it up online and you are going to use one that everyone else says is proven to work. This means that most trading strategies that you will utilize do actually work. The problem isn’t the trading strategies. The problem is you. You need to be consistent. Inconsistencies will lead to inconsistent wins and losses. Master a single trading strategy, make sure that it works and then if you like, move onto another one.

Your Strategy Needs to Have an Edge Over the Market

When it comes to the most valuable trading lessons that you need to learn. Although being consistent is of course very important, what you also need to realize is that you always have to have an edge over the market. The simple explanation here is that whatever trading strategy you choose to use over the long run, it needs to be profitable.

Or in other words, it needs to produce a positive result. The fact of the matter is that no matter how consistent you are, if your trading strategy does not produce a positive result in the long run, then you are going to end up consistently losing money.

Of course, in this sense, consistency is not a good thing. Now what you need to realize here is that it is possible to have an edge over the market with a low winning rate because your average gain is still at much higher than your average loss. But it is also possible to have an edge over the market if you have a higher loss than gain ratio because you’re winning rate is very high. Either way, you need to have an edge over the market and this is one of the most valuable trading lessons that we wish we knew when we first started trading.

Just Follow the Price

Yet another one of the biggest trading lessons that you need to learn as a newbie trader is that it’s usually best if you follow the price. If you don’t know how to do analysis or you just don’t have time to crunch all of those numbers, then what you should do is to follow the price.

If the price is moving higher, you should place buy trades and if the price is moving lower, you should place sell trades. Another piece of advice that you should follow is to always pay attention to the price no matter the fundamentals. Therefore, if you see that the price is going up, but you think that there might be a bearish reversal in the horizon, you should still follow the price, especially as a newbie trader.

There is No One Size Fits All Strategy

In terms of valuable trading lessons that you need to learn as a newbie, this one is perhaps the most important. The fact of the matter is that many traders think that there is some kind of one size fits all trading strategy which some people refer to as the Holy Grail. Sure, it’s some trading strategies are much better than others. This is true.

However, the fact of the matter is that every market is different, and every type of trading is different too. This means that a trading strategy that works well for Forex swing trading is probably not going to work well for cryptocurrency day trading. Each trading strategy is specifically designed for specific markets, and the sooner you figure this out, the better you will perform.

It’s Not a Get Rich Quick Scheme

The next of the Super valuable trading lessons that you need to learn is that trading is not a get rich quick scheme, but in fact is a get rich slow scheme. You can easily grow your trading account to 7 figures or even eight figures, but it does take a long time.

The fact of the matter is that slow trading, or in other words, placing many small investments, is much better than placing just a small amount of big trades in the hopes of making it big.

Sure, you could win a whole lot of money in a limited amount of time, but as soon as you lose a single big trade, the journey is over. Therefore, what you want to do is to take the slow approach, because if you engage in proper risk management, your chances of winning trades are much higher. It’s much better to make slow profits than it is to lose money. It’s as simple as that.

Trading Lessons for Newbies

The bottom line here is that if you pay attention to the various trading lessons that we have provided you with here today, your chances of becoming a profitable and consistent trader increased greatly. Remember folks, these are lessons that we wish we knew when we first started trading. Luckily for you, you can get right past making the errors and get right to trading the proper way.

If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.  

CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS! 

Most Common Day Trading Mistakes

Fabian FabianLatest News / Latest News / NewsLeave a comment

Most Common Day Trading Mistakes

OFFICIAL WEBSITE: IncomeMentorBox.com

Are you a newbie trader that is just getting into the world of day trading? Yeah, it can be really exhilarating, especially when you rack up some wins and profits. However, unfortunately, the world of day trading can be a brutal and unforgiving one, and there are some common day trading mistakes which far too many people make. These are common day trading mistakes which can and should be avoided at all costs, at least if you like winning. Today, our Income Mentor Box article of the day is going to focus on 3 major day trading mistakes that you need to steer clear of.

Income Mentor Box Common Day Trading Mistakes

 

3 Most Common Day Trading Mistakes

There are a few really big day trading mistakes which many novice traders and newbies make. These are day trading mistakes that will not only cost you single trades, but will have you losing trade after trade. If you commit these day trading mistakes, you will end up burning through your investment capital faster than a forest fire burns through the hills of California during the dry season.

 

  1. Trading Against Trends

One of the most common day trading mistakes that we see newbies making time and time again is trading against trends. Folks, there is a reason why there are trends and why we as day traders observe them. It is because trading in the same direction as trends is usually quite predictable and profitable. There is a good reason why there are so many trend indicators out there, because then tend to work pretty darn well.

For the most part, trading against trends, such as executing a sell trade in an upward trend, us just unreasonable and statistically speaking, it usually just does not work out very well at all. Use your trend indicators, follow trends, and predict new trends, but don’t try and get all revolutionary and trade against trends. When it comes to common day trading mistakes, trading against ongoing trend is one of the biggest and most fatal ones out there.

  1. People Investing Way Too Much Cash In A Single Trade

Another one of the most common and fatal day trading mistakes which inexperienced traders tend to make is to invest way too much money into a single trade. To a certain extent, this also counts for a limited number of assets being invested in. Generally speaking, this is all about the principle of diversity and investment diversification.

If you invest a whole lot of cash into a single trade, and it goes south, well darn, tough luck for you, looks like you just lost all your money. For instance, if you have $3,000 in liquid cash to trade with, you should never invest more than $250 into a single trade. This way, you can place up to 12 trades with that money, and potentially win a whole lot of them. However, if you blast that whole 3K into a single trade, and it loses, well, you just burned your investment capital. Always keep some cash in reserve, don’t invest in large lot sizes, and diversify your trades.

Choose a few Forex trades, maybe some commodities, a couple of diverse stocks, and so on and so forth. When stock trading, if oil stocks all go down, if you only have oil stocks, you will lose a whole lot of money. So, invest in some oil, gold, tech, or whatever else, but just don’t invest all of your cash into the same type of asset. It’s all about diversification folks. Investing too much cash into single trades, and only investing in one asset type, is another one of those big day trading mistakes you have to avoid.

  1. Going Overboard With Margin & Leverage

Yet another one of the most common day trading mistakes which newbies, and even lots of pros make, is to go overboard with margin and leverage trading. To put it in a nutshell, leveraging trades allows you to trade with much larger cash quantities than you actually have at your disposal. For instance, if you leverage a trade by 10 to 1, it means that you only have to put up 1/10 of the money to trade with. In other words, for a 10 to 1 leverage trade, you are only investing $100 up front, but because it is 10 to 1, the trade is actually $1,000.

This lets people trade with much more cash than they actually have, and it is super dangerous. Yes, the reward can be massive, but so is the risk. This is because even though you only invest $100 up front, if the trade turns out to be a loser, you are on the hook for the full $1,000. The $100 is the margin, and 10 to 1 is the leverage, thus this is a $1,000 trade. It can be great if you win, but so much worse if you use, especially if you are trading beyond your means. In terms of day trading mistakes, this is one of the mistakes which puts a whole lot of good folks out of business.

INCOME MENTOR BOX TELEGRAM SIGNALS GROUP!

Something that we definitely do not want all of you to forget about is that we have a brand new signals group for Forex signals. That is right, we have released our very own Telegram signals group for Forex. If you sign up for our Income Mentor Box Day Trading Academy within the next couple of weeks, you will gain free lifetime access to our Telegram Forex signals group. All you have to do is take the signals as they come, place the trades in your broker of choice, and watch a the profits roll in. It really does not get much easier than that.

 

3 Day Trading Mistakes – Final Thoughts

The bottom line is that the 2 big day trading mistakes which we listed above are fatal ones that you need to avoid at all cost. To learn more about becoming a pro day trader, you should absolutely check out what our Income Mentor Box Day Trading Academy has to offer you.