I’ve been trading for 10-plus years.
At this point, I know what it takes to go from day-one beginner to successful trader.
Now that I have the opportunity to help others on their journey from beginner to pro…
I’ve realized there are 6 main problems that trip most traders up.
They’re the underlying reasons why most traders fail to reach their goals.
The good news, though, is that they are all 100% treatable…
And today, I’m going to break them down so you can avoid them for good.
Here we go:
- Trading low probability opportunities.
Traders like to trade.
But in order to find the best opportunities in the market, some research and analysis needs to be done.
It’s also important to know when to stay on the sidelines, and when it’s time to enter.
This is closely tied with the next problem…
- Overtrading.
This problem is a direct result of the above issue.
You should only enter the best setups out there and avoid taking on low-probability opportunities just because there isn’t anything better in the market.
Be patient and disciplined enough to only trade your ideal setups… when they develop as you expect… and when they follow your entry and exit plan.
It all comes down to not lacking on the next point…
- Lack of a working strategy/system.
The advantages of a well-tested strategy cannot be overemphasized.
A trader that doesn’t follow a trading plan, strategy, or system is not a trader… but a gambler.
That’s how important it is!
A trading strategy is the roadmap that leads every move you make in the market.
From finding the best opportunities, to executing the trade, to booking the profits.
Yet having a strategy alone is not enough…
- Failing to adapt to the market.
The market is never static.
The rules of the game can change at any moment.
There’s always something going on… new laws, new deals, last minute events, etc.
Panic triggers irrationality, and irrationality changes the rules of the game.
Failing or taking too long to adapt to market changes typically results in lost money or money left on the table.
Successful traders are aware of market changes, and they modify their strategies in order to keep winning.
Yet in order to succeed at this, you need to keep your mindset in check as well.
That’s what the next two problems are all about…
- Refusing to be wrong.
When it comes to trading, everybody wants to be right, every time.
I mean, that’s what our success comes down to, right?
But sometimes it’s better to just admit that the trade didn’t go our way…
… take a small loss and learn from it.
No trader wins every single time.
But the ones that win the most are those that learn from their mistakes.
Remember:
There will ALWAYS be another trade.
So take your lesson and move on to the next one.
Just make sure you don’t get caught by the last problem…
- Fear.
When it comes to trading, there are two types of fear to be aware of…
Sometimes past failures can leave us hesitant to make an entry when the conditions are favorable. This is called paralysis by fear (the first type of fear), and it usually results in traders getting on the bus late.
The second type of fear is known as FOMO (fear of missing out). This one typically results in traders getting on a bus they shouldn’t be on in the first place.
Sometimes, the markets are wild and we see “once in a lifetime” opportunities.
Just like with GameStop…
But most times, the upside opportunity on these trades is gone by the time you find out about it. Plus, it’s irresponsible to get into a trade without doing your due diligence.
If you take on a trade because you don’t want to miss out, you’re trading for the wrong reasons…
Anyway…
Success in any field comes down to repeatedly doing what works and avoiding what doesn’t work.
The above six problems act as obstacles to trading success.
Once I learned how to avoid them, my trading became more predictable and profitable…
