5 Stupid Trading Advice Points to Avoid
When it comes to financial trading, everyone has an opinion, and there is no shortage of advice floating around.
However, some advice is just plain ridiculous and some tips can be downright detrimental to your trading success.
I want to cover the 5 stupid trading advice points, that many traders still follow and why you should avoid them by all means.
#1: Go Big or Go Home
This advice suggests that you should take significant risks in trading.
You should aim for massive gains.
And you should adopt the casino mentality of going full port!
It is true that higher risks can lead to higher rewards.
But when you adopt a “go big or go home” mentality, it can result in substantial losses that are difficult to recover from.
Instead, follow a disciplined approach to risk management, using appropriate position sizing and stop-loss orders to protect your capital.
Risk little to make a little more. Risk 2% to make 4%. Or risk 1% to make 3%. Those small gains will eventually outweigh the losses.
#2: The Next Trade Will Be Better
If you believe that the next trade will magically be more successful than the previous one, you’re in for a bad time.
This is nothing but a dangerous mindset to adapt to.
This belief can lead to overtrading and a lack of discipline when you stick to your trading strategy.
To avoid falling into this trap, focus on maintaining a consistent and well-defined trading plan, rather than trying to chase the elusive “better” trades.
#3: Follow Your Heart
Emotions are proven to be the trader’s worst enemy.
They will often cloud judgment and lead to impulsive decisions.
“Follow your heart” in trading and you’ll find you’ll ignore your strategy and you’ll take irrational risks.
Instead, rely on your trading plan, technical analysis, and fundamental research to make informed decisions, and always keep your emotions in check.
#4: Everything Happens for a Reason
When you depend on fate, the stars and the mysterious cosmic plan, it is a surefire way to lose money in trading.
The stock market doesn’t work on esoterical means. It works on simple demand, supply and volume.
The financial markets are also influenced by countless factors, from economic data releases to geopolitical events, and it’s essential to understand these factors to make well-informed trading decisions.
Don’t rely on fate or superstition when trading.
Instead, focus on analysis, strategy, and risk management.
#5: Work Harder and You’ll Win More
While hard work and dedication are essential for success in any field.
The belief that you need to work harder in a trading day, will guarantee more wins in trading is misguided.
If the environment is not conducive. Or trades have not aligned according to your strategy, it’s pointless taking more trades for gain.
Think of sideways markets.
Whether you buy (go long) or short (go short), you’re more likely to fail.
Trading is not just about putting in the hours; it’s about working smart, refining your strategy, and maintaining discipline.
Instead of trading harder, focus and develop a comprehensive trading plan, continually educate yourself on market dynamics, and consistently reviewing and refining your strategy.
And of course. JUST TAKE THE TRADE – When it lines up according to your strategy.
Order via our secured website:
Click here to order The Complete Charts Patterns and Candlesticks Guide by MATI Trader book
Or order via EFT payment”
Click here to order the book via EFT (all info in the invoice).
Enjoy and remember…
You won’t need to buy or order another book on chart patterns and candlesticks ever again as I will be updating it very often and will let you know.
Not sure the best way to get started with MATI Trader?
Follow these steps to start your successful trading journey.