There’s been a flood of eager traders who are trying to make a quick buck while they’re working from home.
Some of them have been lucky enough to make it out with some gains…
While others have taken it on the chin and commit some account-crushing mistakes.
If you’re a relatively new trader, or have been struggling there are three questions you have to ask yourself:
- Am I trading with a clear and concise trade plan?
- Do I understand the the stocks I’m trading?
- Have I discovered a time to trade that benefits me the most?
If you answered no to any of those questions, you’re setting yourself up for failure in my opinion.
I want to show you how to avoid common trading mistakes and reveal to you some solutions I’ve come up with.
Three Common Trading Mistakes To Avoid At All Costs
What I’ve noticed right now is traders have been making a lot of mistakes…
One of the most common ones I’ve noticed is they’re trading without a plan.
They just buy random stocks or options at random prices, with no stop-loss or target in place. I can tell you this is something you certainly don’t want to fall into a habit of.
Imagine you don’t have a trade plan and a stock goes against you…
What do you think would happen?
You’d probably double down, thinking you’ll get a better average price… and keep buying if the stock moves against you, only to hit your paint point and puke your position.
Listen, I didn’t get the $10M in career trading profits by trading without a plan.*
Whenever I trade, I always know my buy, stop-loss, and target zones. If you don’t know where to start, a plan can be as simple as just a short thesis, areas where you would consider buying, stopping out (in case the position goes against you), and targets…
Or it can be as detailed as you want it to be.
The next common pitfall is not really understand what they’re trading. They’ll just jump into a random stock just because it’s moving. This is one of the worst mistakes a trader can make.
Make sure you always conduct due diligence and know what’s going on in a specific stock. You can use websites such as Finviz, Earnings Whispers to stay current on a stock… and the company website should help to.
Last, but not least… many traders have just been trading all day and don’t really know the best times to trade.
To me, a quick tip would be to look back at all your trades and find which times you’re making the most money and which times you’re losing the most.
I’m not going to be surprised if it’s within the first hour or the last hour of the trading day because that’s typically when there’s the most opportunities.
I’ve done all the research, and I believe I’ve come up with the best solution I possibly could to solve some of the most common trading mistakes.
How does it all work?
*Results presented are not typical and may vary from person to person. Please see our full disclaimer here: ragingbull.com/disclaimer