There is a lot of hype in the online world that lures many from all walks of life to try their hand at trading. Only a few succeed to make any money, most almost 95% fail and lose their account. There are a couple of simple reason why this happens. In this article we will list them out, and hopefully the young trader can avoid such mistakes.
1. Too eager for profits. This is the number one killer I believe. Why I say this is because many young traders succumb to the greed that is the curse of us humans. We want to make quick profits and in that want we take risks that we would normally not take. In fact we do the craziest things and actually believe that it becomes something that would "just for us" We create a fantasy world and live there!
2. Not enough learning. This is really the 2nd biggest killer. Now you might e screaming out loud saying you have read and bought every book every written on trading. So why aren't you making a killing? Knowledge and learning are different matters. Learning is taking that knowledge and applying it to each and every action you do. If you have the knowledge but take no action on it, then it is same as the trader who has none.
3. No proper trading plan. Now a trading plan is not a jumbled collection of wants. A proper trading plan lists out each and every action you will take at each juncture of the trade. It must clearly spell out, what your profit objectives are, what is your risk level, your stop loss, when to enter, how to exit the trade. And to top things off it must be so simple that a 5 year old could do it! Sounds like a tall order? Not really, read my free ebook to find out how you can do all that.
4. Discipline. Most traders would say that their discipline is really there, but sometimes things happen in the trade and you know...stuff happens...I get that so often it starts to become funny. These are excuses, and if you have been telling yourself that it is time to stop and take stock. Manage your mind and you will be able to manage your trading. That will lead to profits coming in consistently.
Do not wonder why the above mentioned sounds so common sense. You have been given pointers, the only thing that separates the old you and the new profitable new you, is the action you will take now. Choose wisely and take responsibility for your choice.
Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. For a limited time get his free Money Management to a Million Dollars e-course here: http://www.pipsalot.com
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