Five Mistakes Online Traders Make That Experts Want You To Avoid For Your Protection
“You have been a very bad boy, Sir!”
Imagine hearing that from an online trading expert every day. People make mistakes every day. Our job is to learn from these mistakes. Trading online stocks are not much different. Traders get arrogant sometimes. Their ego gets a boost with each win. They figure they might take a chance and tempt fate. The only problem is that a lot of them end up killing their winning streak because of that. The other problem is when traders cut their losses too soon. They get out ahead of time and miss a prime opportunity. Their ego gets bruised and the logical side pays the price. investmib.com
How can you fix that?
It is simple. You need to exercise caution. You also need to resist the urge to get too full of yourself. That is when the problem starts. The next thing you can do is read some of the following tips we have for you below.
1) Some traders get misled by waiting for the right moment to start trading. You need to focus on time in the market. You cannot get caught up in market timing. There is a difference. You are going to face up’s and downs. You should be focused on a long-term approach.
A lot of traders get caught up in the short-term aspect. They get psyched out by a stock’s short-term performance. You need to be able to ride out the storm. Use logic and reason. The moment you rely on your emotion is the moment when you give up on a possible win.
Trading is not for everyone. Those who cannot stand the fire are advised to stay out of the kitchen.
2) You should be focused on the business side. Stay away from the ticker symbol. The ticker can play tricks on you. You are buying into an enterprise with each stock investment. You need to stay focused on the investment side of things. Try to block out the noise of the ticker’s red and green lights.
3) You need to make a prenup with yourself. This is a long-term thing you are doing. What do you want to get out of your time in the market? Make a list of the pros and cons of everything. It is similar to making a pros and cons list of the person you are dating.
“Do a cost-benefit analysis. Is the cost of pursuing the relationship be worth the benefits you accrue from the investment?”
4) Do you want to commit everything you have right away? You might want to hold off on that. It is similar to putting all your eggs in one basket and hoping for a nest of birds. It does not always work out the way you want it to. Sometimes it is better to invest a small amount and see what happens. Start by small trades, here and there, on a regular basis.
“Inch by inch. Mile by mile, Slowly, I turn.”
5) Some traders do get caught up in the “fake news>’ They do not pay attention to the truth being presented in the market. They get caught up in this opinion or that. Actual news is more impressive than the noise you hear. You need to learn the difference.
Paying attention to the noise is similar to making a knee-jerk reaction based on a short-term prospect. It is not going to end well. Stay focused on your path. You cannot worry about what others are doing and saying.