Trading is 90% planning, 10% holding on for dear life. In this meme stonk world, even the best of us have made these mistakes:
1. Not having a plan: The #1 mistake most traders make is not having a plan or not following one.
Try this instead: Avoid FOMO by setting up a paper trading account to simulate buying and selling without risking real money.
2. Overtrading or revenge trading: You make a few good trades, have a decent P&L and instead of calling it a day...you continue trading. Before you know it, your P&L is in the red, you’re getting emotional and doing revenge trades (i.e. forcing trades after a big loss).
Try this instead: Follow your stop loss plan, step away from your trading to regain control of your emotions, and if necessary, reassess your trading plan.
3. Scaling up too fast: Your P&L is up $200 a day, you get cocky and decide to add a zero to the end of that position. The problem with scaling up positions too fast is that it involves a lot more risk and stress that we're ill equipped to handle.
Try this instead: Stick to the original plan. Put aside a certain amount of money to trade each month, increase it incrementally over time to allow yourself to prepare for proportionally bigger losses, and minimize emotional trading.
For more investment knowledge and trends, welcome to Courses in the Community.
Comment(37)
I Fight this all the time
Good
Need to correct the comment from hodl to hold
Set a max loss for the day, when or if you hit it, walk away for the day
good
correct
Have a plan or plan not to have.....
Yes! All these points are basically my mistakes!!!
number 1 should be dont listen to the news!
so who we listen too?
we do our own DD and make our own decisions, the news and the government care nothing for me or my family.
omg
I feel like they were talking to me. Lol
will do
Great advice. Been there and done that. Still learning.
This is me as well
ok gentlemen not a bad day
so me lol
love it
it's called hodl dude. not hold. trader lingo
Very good!
trust yourself more
As a new trader this is very valuable information!
it's all losses now days with the shorts and their bots
I had no clue about all these things until reading this article. Oh man! I love this app. 😍
Facts😭😭
I needed that
Great advise !
I have learned all of this the hard knock way and now I'm starting over with a fresh start with moo moo
lucky/unlucky me and moo moo
This is good information.
understand completely 💯
thanks
Ive been trading stocks and currency about 5 yrs now. In the beginning Ive lost more than I have gained BUT my ROI is much better now than it ever was and I am gaining on a profit over all very soon. I came to MooMoo looking for a new trading platform. I have been working with the platform and learning its pros and cons. So far I feel pretty confident I will move my accounts over here.
Stjck to your original plan 4 that day!!
Thanks
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