As traders, we try to do constructive things that build faith in ourselves, and confidence in our trading systems. We want to stay on the right path and not wander into the wilderness of destruction. Here are the seven things that we must be cautious of for the sake of profitability.
3. Trade first and learn how to trade later. Traders who don’t spend time educating themselves before trading will learn the hard way, and give their trading capital to other traders as tuition.
4. Focusing on ego and the desire to be right, instead of profitability and big losses, will quickly destroy a trader’s account.
5. Traders that fight the trend and disagree with the actual price action will give their trading capital to those that follow the trend.
6. Trade without discipline and risk management and a trader will be destroyed regardless of their trading system or method.
7. If a trader doesn't diversify their life with strong relationships, fun, peace, and health, their trading results become too entangled with their self worth. This can lead to mental and emotional ruin.
The path to profitability leads away from these seven habits. In the end, traders are consistently rewarded for their good habits, and punished financially for their destructive habits. This is our stop list.
1. Blaming outside forces for poor trading results is an incredibly destructive behavior. High frequency traders, market makers, and irrational markets, give an undisciplined trader license to make reckless trades. The less responsibility taken for results, the more destructive they can be with an account.
2. Trading with no plan and making decisions based on feelings, is a really bad idea. Letting opinions and predictions be a guide to entries, and emotions be a guide to exits, guarantees maximum destruction of trading capital.
3. Trade first and learn how to trade later. Traders who don’t spend time educating themselves before trading will learn the hard way, and give their trading capital to other traders as tuition.
4. Focusing on ego and the desire to be right, instead of profitability and big losses, will quickly destroy a trader’s account.
5. Traders that fight the trend and disagree with the actual price action will give their trading capital to those that follow the trend.
6. Trade without discipline and risk management and a trader will be destroyed regardless of their trading system or method.
7. If a trader doesn't diversify their life with strong relationships, fun, peace, and health, their trading results become too entangled with their self worth. This can lead to mental and emotional ruin.
The path to profitability leads away from these seven habits. In the end, traders are consistently rewarded for their good habits, and punished financially for their destructive habits. This is our stop list.
Source: http://newtraderu.com/
