How to make things unnecessarily harder for yourself: TOP 5 bad trading tips

Today, we shall explore the common mistakes novice traders tend to make and unveil TOP five bad tips on how to make trading harder for yourself and achieve the worst results. You may recognize your own past failures but keep in mind that humor seems to be the best remedy.

Contents:

1. Mistakes made by newbie traders: Forewarned is forearmed
2. TOP 5 bad tips

• Hunt for the Holy Grail and go from one strategy to another
• Growing your trading account quickly or one big push
• Ignore money management or enter trades by feel
• Feel discouraged and admit that “Forex is a scam”
• Of course, you need no mentors

Mistakes made by newbie traders: Forewarned is forearmed

There are three key factors behind your trading success:

1. Profitable strategy.
2. Decent money and risk management.
3. Appropriate trading psychology.

It’s like a three-legged stool: if it doesn’t have at least one leg, it’ll fall. We know various trading myths associated with the above areas. And if you enter the financial markets to achieve the worst results, we’ve got you covered with our list of possibly the worst tips one can think of. These dud advices will help you lose your trading deposit as quickly as possible while protecting you against any profit.

TOP 5 bad tips

1. Hunt for the Holy Grail and go from one strategy to another

You can make money in the stock exchange only if you know the win-win trading strategy, i.e., the Holy Grail. Consistently profitable traders have found the Holy Grail but they keep it off the radar. With that said, you can get it too as long as you put enough effort into it.

Here’s a simple guide to finding your Holy Grail:

• Go through as many trading strategies as possible by testing them in your demo account.
• The second you make a losing trade, you must stop testing and toss the strategy away.

• If you are super patient and ready to give your strategy another chance, feel free to drop it after 3–5 losing trades in a row.

• You must draw conclusions based on a limited number of trades. Ideally, you shouldn’t have more than ten trades.

These recommendations do hold water. However, don’t get too carried away and keep in mind that the above tips are actually useless. In order to succeed, stick to the right ones below:

• Any profitable strategy generates both winning and losing trades.
• You can face a series of losing trades but this doesn’t mean that your strategy is unprofitable, if you follow all of the rules.
• You need to test your strategy with a large sample—using a tester or a demo account—and only then draw any conclusions.
• The myth about the Holy Grail is tenacious, although there is no magic recipe.

2. Growing your trading account quickly or one big push

Traders make millions in stock exchanges. You can start with as much as $100.

Learn more

Both statements are correct, but some “geniuses” manage to combine and use them as a call for action:

• If you have a minimum amount, you can grow it exponentially within a short period of time.

• You need to open big trades or “risk it all”.
• One big trade will make you successful!

Here’s an illustrative story shared by a client.

“When I just started my trading career and didn’t understand much, at one point, I faced a series of losing trades. Just like many other traders did before me. Suddenly, I overheard an experienced trader saying to another, “You’ve currently got $1,000 in losses. This can be easily recouped. You just need to earn $1 in a trade with 1,000 futures.” That was a pretty simple piece of advice. Obviously, I lost my entire deposit because of such advice the very next day”.

• The trading success is made of small consistent steps.
• In our world, nothing evolves with one big push. Neither a tree nor a person grows overnight.
• There is no such thing as instant success. You need to be patient and take small yet consistent steps in the right direction.

Warren Buffett once said:

“No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.”

3. Ignore money management or enter trades by feel

• Money management is obviously important. And I’ll calculate the trade volume. I even know how to do that, as I’ve got the calculation formula somewhere. And I’ll definitely do that. But now I have no time, so I’ll open my trade by feel but first things first tomorrow I’ll create my calculator in Excel and start calculating everything.
• Risk management obviously makes sense when you have a large trading deposit. Yet when it’s small, my profit is quite trifling. First, I’m going to quickly grow my deposit, and then we’ll get down to money management. I’ll make sure to create a risk management system like the liros have.

But wait! This type of self-deception destroyed more than one deposit. If you actually wish to preserve your money and not send your account—possibly another one—down the drain, you must stick to your money management rules. And install Risk Manager already to protect yourself against losses—you are not Bruce Almighty, after all!

Do you believe that your profit is unimpressive? First of all, it’s definitely better than incurring losses. Second of all, you’ll develop the habit of trading profitably and also be able to increase both your deposit and profit.

4. Feel discouraged and admit that “Forex is a scam”

Have you been trading for a long time but still can’t make any profit? “You know, we did warn you that Forex is a scam and you can’t make money out of this!” some may point out.

And they’ll be wrong because there are loads of traders who have been trading profitably for years. They probably do some things differently. The easiest way is to give up on trading altogether. You might even feel relieved. For a short while. But there is a better route: you can concede and correct your mistakes, hit the reset button, and, over time, enjoy your winning trades and profit.

5. Of course, you need no mentors

These statements may sound rational at first but they can’t add money to your account. Meanwhile, under the tutelage of an experienced and successful trader, you’ll be able to make your income grow.

For instance, Reboot of Your Trading training course offers practical assignments, feedback and guidelines to follow.

Successful people know that mentors show the shortest and cheapest path to success as they protect you from many losses.

Useful articles:

• TOP 5 psychological mistakes made by traders and how to address them

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