1. You Don’t Have A Plan
2. Trying To Run Before You Can Walk
Where do you sit on the lifecycle? Realistically if you are in your first 2 years of trading, you are not yet able to run. Take it slow and walk, or you will fall on your face.
3. You Don’t See The Big Picture
Trading is a business based on probability. And probability means that sometimes we get what we want, sometimes we don’t. And that’s the nature of the this business. The sooner we accept this, the better we can operate it as business.
4. You’re Living In The Past
5. You Blame Someone / Something Else
Only when you can accept responsibility for your actions and decisions, will you become a better and profitable trader.
For example, if you decide to trade based on someone else’s recommendations, and lose money, it is your fault, not their fault. You chose your guru, and you chose to invest based on their recommendations.
You decided to trust the their published results, showing they won 75 percent of the time. You decided not to paper-trade the recommendations for six months to confirm the results before starting to trade real money. You didn’t stop to find at least one independent source who had confirmed the their track record before trading. You, you, you!
6. You Don’t Think You Can Succeed
7. You Give Up
To become an engineer you have to study 4 years, and probably another 4 years (at least) to become a good one. Why people expect it to be different in trading? What does it really take to become proficient in trading? Can you expect to double your account every 6 months after being an active trader for few months?
Trading, as any other highly competitive sport discipline, takes a lot of hours in front of the screens and practice.
Van Tharp says successful trading/investing is 60% psychology…only 60%? Humans desperately want to believe there is a way to make money with no or little risk. That’s why Bernie Madoff existed, and it will never change.
I would like to finish with a quote from a stock trading legend Mark Minervini:
“The stock market provides the greatest opportunity on earth for financial reward. If you’re not doing well, it’s because you either have not taken the time to study and understand what actually works, or you simply lack experience and you need more time. Don’t give up!”
Best luck with your investments!
- Why Retail Investors Lose Money In The Stock Market
- Can you double your account every six months?
- How to Calculate ROI in Options Trading
- Performance Reporting: The Myths and The Reality
- Are You EMOTIONALLY Ready To Lose?