Mistakes New And Unprofitable Traders Make And How To Avoid Them

Mistakes New And Unprofitable Traders Make And How To Avoid Them

Transcript

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What’s up guys so today I want to go over the top mistakes most new Traders make I’ve made them I have friends that made them and just through talking to everybody I’ve compiled a little list and hopefully after watching this you can avoid those pitfalls so the number one thing I would say that every single Trader does when they’re new is over trades they think that the majority already the day Traders are buying and selling and buying and selling almost like

High frequency computer trades um I don’t think that new Traders realize that most of the people are taking I don’t know five or less trades a day like five last quality trades a day um some days I take you know maybe two fullsize trades I’m not talking about you know a feeler here a feeler there I’m talking about going to my my full size for a day trade um maybe two to three times a day um you know but every time

I talk to friends or people on the internet that when you know why am I not making money you know I say well how many trades you make in a day you know 30 trades you know 40 trades some of them are trading you know say multiple times within the same minute it’s crazy um so I think that would be one of the things to avoid the second is flip-flopping so basically or argument sake say you have a setup that that

Comes about like we’ll just say this setup right here um so say you’re going to play this break right well say you bought on this top green cam CLE and then it rejects the trend line so then you go short and then it goes back up and then you go back long and you start going back and forth long short long short long short and you kind of get yo-yoed um that is what a lot of new Traders do they don’t

Pick their entries at a good point and they end up going long and then when it dips a little bit they end up selling and even worse then they go short and then it goes up and then they sometimes follow it up and then it rejects so they sell again for a loss and go back short and before you know it you’re just blowing hundreds or thousands of dollars and the the thing didn’t even go anywhere like argument sake like you

Know they would just do this little little bit here and um that is probably I see that happen all the time I call it the yo-yo where it’s just you get yo-yoed um what you have to do like anything you pick your thesis out and you stick with it I think new Traders have too tight of a stop loss as well because they don’t trust in what they see so argument sake say you were going to play this little breakout right

Here um me personally I would look for an entry back at this purple line which is the eight but say they chased it um you know would have bought up here and when it dipped maybe 10 15 points they would have definitely sold but the play is still good it’s still holding above the trend the the trend line and the fact is they will get stopped out why a season Trader would stay in the trade because it still looks good and

Would have profited at the end of the day um but that is why season Traders do not Chas they buy at support and you know let a couple go at resistance and then hold for the breakout I see that happen all the time the other thing I see is which kind of goes hand inand with the getting stopped out too early is they go too heavy you know say you’re trading NQ I for a full position for me is about three

Full contracts when you’re starting out you should be using micros and going maybe five micros so you can let this thing move around like 20 points is 200 bucks so you can give yourself a nice 20 point buffer so you know you’re going to if if you’re right you kind of give it leeway and that’s probably where I would start off going is five micros um give yourself room don’t keep the tight the stops too tight and let the trade work

Because what happens a lot is people put these stops in they’re super tight they get stocked out and then it goes and they I always hear oh I knew it was going to go well if you knew it was going to go you would have stayed in you know what happened was you looking at your p&l instead of just looking at the chart and you got stopped out because you got worried and instead of just looking at the chart saying hey

This still looks good let me just wait it out um like a real Trader would because they’re new they get stopped out it goes and what’s even worse is say like a setup like this uh they end up buying like up here because it broke out and they think they’re going to miss the big move they follow it and then the thing ends up just tanking on them and then they lose again and I see this over and over fomo just

Killing new Traders the tight stop losses the overtrading the large positions you know when they lose one position they go in bigger on the next position um um you know you should be having a trade plan what you look for what type of moves you look for do you play long do you play short I know some people don’t even play short they only play long so if it’s not looking good to the upside they just sit on the sidelines but

It’s fine because they only need that one long Play A Day to make serious money because they go in heavy when when it presents itself um so yeah I mean those are some of the the main ones that I I would focus on as a new Trader to stop um definitely always have a trade plan you know not only back test you know you could forward test you know play with uh paper money but as real and test to see what

The results are um there’s so many different ways to do it but I would say the overtrading over buying um small stops is what’s going to get every new Trader uh right away and those are the things that I would say I would work on instantly if you’re new or if you’re unprofitable that’s where I would look first and then from there make adjustments maybe on your trade plan um what indicators you’re looking at what setups you’re looking at and then

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