Thursday, June 10, 2010

worst trading mistakes

* Traded blindly without any homework or trading plans (poor discipline).

* Traded impatinanctly in congestion or non-trending zone (poor trade plan).

* Traded without Stop Loss or with too big Stop Losses (poor Risk Management).

* Traded way too many trades in a day resulting net losses (poor Risk and Money Management).

* Traded against the prevailing trend and then booked losses (poor Plan and Risk Management).

* Traded with the trend but booked small profit and too early.

* Traded with good plan (mm, rm, plan, discipline) but with no faith in the plan resulting less profit to cover other big losses.

* Traded booking small profits and big losses.

* Traded at Market Price in less volume scrips resulting big losses.

* Traded on speculations, rumour or news and getting traped in Market Makers game resulting big losses.

* Traded within fear/greed barrier and without knowing risk/reward ratio.

* Traded on spoon fed tips resulting huge losses.

* Traded getting psyched from CNBC or US/Europe speculations and resulted huge losses.

* Have commited all above and now seasoned trader.

* Have commited some of Marked above Plus some other

* None of above but some other.

* Never commited any mistakes.

* Traded not even realizing after loosing lots of money & time in markets is Not Knowing which Time frame suits personality.

* Averaging and overleveraging to losing position and selling in panic.

* Converted intraday or swing trades into short term and long term without reasons.

* Committed some or all of above - again and again.

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