Saturday, 18 November 2017

7 Errors Traders Make in Bull Markets

By Steve Burns

Here are the seven most common errors traders make in a bull market.
  1. They wait for a correction to get long that never happens. So they end up missing a big part of the up trend.
  2. They do not get long with a big enough position size or enough leverage so they end up underperforming the market.
  3. They do not buy the small dips when they get a chance.
  4. Perma bears do not believe in the bullish move higher so they sell short losing money in a market where it should be made easily by being long.
  5. Some fundamentalists think the market is too expensive so they stay in cash missing a strong up trend as they wait for buying opportunities at better values.
  6. When the dip they were waiting for finally happens they are too scared to buy it and they then begin to fear that the market will crash.
  7. Instead of making money too many get obsessed with calling a market crash because they believe the market prices are too damn high.
The best strategy for a bull market is to not fight it but instead sit back and enjoy the ride.
www.newtraderu.com

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