Top 10 Common Stock Trading Mistakes

By Author: Hugh G.
Total Articles: 4
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We all make them. Some of us, all the time. Here they are: the Top 10 Common Trading Mistakes.

1. Greed. This is the killer.
Solution: Plan the trade and trade the plan. Be happy with reasonable returns. Take the money and run.

2. Reversing Your Position.
Solution: Exit a trade according to your trading plan, not because you got spooked out.

3. Trying to Pick Bottoms and Tops.
Solution: If you did, you got lucky. Just go for part of the move. It's ok to leave some for others.

4. Lose Your Cool.
Solution: Good trading is boring trading. Plan your trade and trade your plan.

5. Waiting Too Long to Pull the Trigger.
Solution: Continually study charts and paper trade to develop the confidence. Just do it.

6. Letting Losses Run.
Solution: When the market tanks, cut loose and preserve what you have left.

7. Avoiding Stops.
Solution: At some point, you need to recognize a bad trade, even if you're down 50%.

8. Following ...
... the Crowd.
Solution: They don't know any better, why follow them? Be secure in your own thoughts.

9. Too Many Open Positions.
Solution: Stay focused on no more than several manageable positions.

10. Not Doing Your Homework.
Solution: Whatever your strategy, ensure your position is justifiable. Know your stock.

Being aware of these conditons is your first step to overcoming them. Stay detached and good trading to you!

Hugh,
Head Trainer and Trader
estockoptiontrading.com

Invest in yourself before in the market. Just as a coach is to an athlete, I personally mentor new and seasoned traders to improved profitability.