These are the five mistakes I see traders often make.
Recognize them and don't be afraid to try to get 1% every day…
If you want to make it as a trader — you're going to have to put in the time and effort.
1. Not Doing Your Research
One of the biggest mistakes I see traders make is not doing their own research and having their own process.
It's tempting to blindly follow others, especially when you're new to trading. I understand — I started in chat rooms myself...
But let me tell you, it never works.
If you follow others, you'll never fully understand the reasons behind a trade. And you won't become self-sufficient.
But the biggest thing I don't like about following alerts is that it gives you the chance to blame others. When you lose — it's their fault. And you don't take responsibility for your own trades.
So, own your trades!
That way, you'll have nobody else to blame and you can make better, more informed decisions.
Do your research, follow your own process, and take responsibility for your decisions.
2. Using Too Much Size
Using too much size is another common mistake.
As a new trader, your primary focus should be on learning a process and developing a consistent methodology — not making money right away.
Start by keeping your losses small rather than trying to win every trade.
And never risk too much of your account on a single trade.
Staying in the game is crucial.
So, be patient, trade with smaller positions, and prioritize the learning process over making huge profits.
3. Not Analyzing Your Trades
Not analyzing your trades is a missed opportunity for growth.
Tracking your data is essential. Whether you use spreadsheets, platforms like Profit.ly or Tradingview, or even pen and paper (which is how I like to do it).
You gain valuable insights into your strengths and weaknesses by recording your data.
Make it a habit to analyze your trades regularly to identify patterns, refine your strategies, and improve your decision-making skills.
Take advantage of resources like the SteadyTrade Podcast to learn how to track your trades.
Watch this episode to learn more.
4. Letting Hope Drive Your Decisions
Hope isn't a strategy.
If you're holding or adding to a loser hoping for a chat room or Twitter pump, or for some press release to come out, you're making one of the worst mistakes a trader can make.
While it's great to be positive and excited about the market and opportunities, when you're in a trade, there's no room for hope.
Have a clear process in place, including predetermined stops and goals, and stick to it.
5. Ignoring Mental Analysis
Your mental state plays a significant role in trading.
Journaling to track your thoughts and emotions is an excellent tool to help you notice how your mindset affects your trading performance.
Sometimes even minor things like a bad day can impact your decision-making.
By journaling, you can identify how your mental state influences your trades.
This is one of the most undervalued practices for traders that give you an opportunity for self-reflection and personal growth.
Now that you know some common mistakes you're probably making — you can work on avoiding them.
And you can start putting in the work it takes to become the successful trader you want to be.
If you want to learn a system to help you hone your trading skills, find some of the hottest stocks, and make solid trading plans — attend one of my free webinars.
I go over all the components of successful trades, so you can learn how to recognize them for yourself.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
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