How to Avoid the Biggest Investing Mistakes

12:48 09/23/2018

Success is not always a guarantee. But if you have a plan in place, you increase your odds significantly. You see it’s not about having the “perfect” strategy. It’s about the rule you abide by with each trade. Anyone can trade a stock or a theme. But it’s takes a disciplined trader to trade well. One of the biggest issues facing all walks of traders is a severe lack of discipline and structure in stock buying habits. Many fail to use stop losses, or even protect gains with a simple trailing stop loss strategy. Others risk far too much. A friend of mine once made 255% in a week’s time on a trade. Then he risked it all on the very next trade that cost him 90% of that 255% winning. That’s a recipe for disaster. A trader with no plan for action has already lost. Pros know when to just walk away from a trade. Lower expectations. Inexperienced traders expect to quit their day job and make a fast-paced, hot lifestyle out of trading. That’s not going to happen. No one ever became a brain surgeon or rocket scientist first year in. The same applies to trading. Remove all emotion from your trading. That doesn’t mean you have to have ice flowing through your veins. It simply means you need to re-think your strategy. No matter what your emotion says, never allow emotion to dictate your trading action. Failure to plan can – and oftentimes will – lead to unnecessary loss. Plan ahead and you’re ahead of the game. We all have the same goal when it comes to trading. Like most investors, one of your top goals has been to enjoy a financially secure retirement at whatever age you choose. That being the case, it stands to reason that your retirement “nest egg” should ideally generate above-market returns, often with below-market risk. To truly be a successful investor, have a plan in place.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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