Thursday, 13 September 2012

Some of the mistakes I have made as a trader in the past,learnt AND have changed my style.Which ones are you making right now???

* Traded blindly without any homework or trading plans (poor discipline).


* Traded without Stop Loss or with too big Stop Losses (poor Risk Management).


* Traded way too many trades in a day resulting net losses (poor Risk and Money Management). 


* Traded against the

 prevailing trend and then booked losses (poor Plan and Risk Management).

* Traded with the trend but booked small profit and too early.

* Traded with good plan (mm, rm, plan, discipline) but with no conviction in the plan resulting less profit to cover other big losses.

* Traded booking small profits and big losses.

* Traded at Market Price in less volume scrips resulting big losses.

* Traded on speculations, rumour or news and getting traped in Market Makers game resulting big losses.

* Traded within fear/greed barrier and without knowing risk/reward ratio.

* Traded on tips resulting huge losses.

* Traded getting psyched from CNBC or US/Europe speculations and resulted huge losses.

* Traded not even realizing after loosing lots of money & time in markets, Not Knowing which Time frame suits my personality.

* Averaging and overleveraging to losing position and selling in panic.

* Converted intraday or swing trades into short term and long term without reasons.

* Committed some or all of above - again and again.

* Was unable to bare the loss and then traded more and more to recover the loss..ultimately completely or nearly wiped out the account.

4 comments:

  1. I hv commited most of these mistakes and lost everything.......perhaps still not learned my lesson.....

    ReplyDelete
  2. Great list, I have commited all except converting in to delivery... still learning.. hope will get it soon..

    ReplyDelete
  3. Made some of them. I am not making same mistake again!

    ReplyDelete