This are some methods that can be help for beat the 10 pitfall’s of trading.
1. Having no trading plan
It becomes very expensive when your emotions are high and you have to make decisions on the hurry.
2. Using strategies that don’t match your personality
One important factor to consider is: does it match who you are and your lifestyle?
3. Having unrealistic expectations
Most traders imagine that it is very easy to make money in trading. They have unrealistic opportunity with regard to their initial capital, their risk profile and how much money they can expect to make.
4. Taking too much risk
Usually when traders are down, they want to make their money back very quickly. Therefore, they increase their position size without thinking about the risk/rewards.
5. Not having rules to follow
Most traders think if they have rules to follow, they are restricting themselves. It is on the contrary. Having rules allows you to be more flexible since you have thought about lots of issues beforehand.
6. Not being flexible to market conditions
It is very important to see the markets as they are and not as you want them to be or as you assume them to be.
7. Failing to take responsibility for your results
When you blame things outside of yourself, you become a victim of circumstance. When you take responsibility, you can react differently to your circumstances and become the success you know you can be.
8. Being addicted to volatility
One of the reasons that people get into trading is because they like the excitement of it. If there is no excitement, they create it. This is one of the reasons that traders sabotage themselves.
9. Not having a process to keep track of your performance
If you don’t keep track of your results, how do you know what has worked and what has not? How can you tweak your process to get the best results that you can?
10. Not dealing with your Emotional Risk
When dealing with money, there are lots of emotions involved. Emotions are part of everyday life. What separates the successful traders from others is how they react to their emotions.