New Trader's Common Mistakes Part 3

The common mistakes made by new traders can actually happen to any trader at any time.

Let’s look at an analogy of learning to play golf. If someone wants to learn to play golf, they have to learn how to use the clubs. You can't just look at the clubs and choose one that is pretty, and then use the same one on all 18 holes. You must learn which club to use for which hole, the length and style of each club, and the conditions each one is best for--and this all can't be learned in a 10-minute video. 

The same goes for trading, as there are many things to learn and it can't happen all at once.

Monitoring Too Many Instruments: How many instruments is too many? Only watch as many as possible allow you to follow all the rules in your system without missing trades. It is probably a good idea to start out watching two or three instruments as a system is being learned; more can be added as you get more advanced.

Inconsistency- Not following a system: Look what happens whan a trade was missed. Was it a result of the system not working, or were the rules simply not beingi followed? Was there hesitation? Successful traders have absolute trust in their system, which allows them to make snap decisions on trades without having to do constant analysis.

Following gut feelings: Some traders feel it is best to follow gut feelings, instead of following a set system of rules. Some gurus even teach this. This may seem like a good plan for a short time period, and it may even work. However over the long run this inconsistency can lead to inconsistent results in your trade.

Developing any skill requires a time investment, practice, and an openness to learning for success in the long term. It is important to have patience when trading. Take the time to demo trade and watch educational trading videos that will help in trading. Be teachable. All traders can learn something. Nobody knows it all. Following gut feelings will not bring the desired success. Learn a system until it is like “muscle memory”, following the rules with exactness, before moving onto another system.

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