What are they?
What are the biggest mistakes a trader should avoid in stock trading?
- Thread starter Vincent S. Ashmore
- Start date
Trading a big account when you don't know how to control risk.
Some mistakes that traders do in my opinion: biggest mistakes traders do.
You can read endlessly on these type of typical cliche trading rules...but they won't really register with you unless you actually start trading and inevitably more or less encounter all of them to a certain degree. 
:eek:
All successful traders have their so-called battle scars where/when they sharpened their teeth and mettle. :Hell Yeah:
:eek:All successful traders have their so-called battle scars where/when they sharpened their teeth and mettle. :Hell Yeah:
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1. Not trading with stops.
2. Taking too big of a position relative to the normal daily handle. If a trader, you want to be able to buy and sell without moving the market much. It's rarely advisable for you to "become the market" because of your size position. Personally, I don't make a play bigger than 0.5% of the usual daily handle in thinly traded issues. That makes my position about 1/200th of the usual trading market, and that's plenty. Even those are relatively extreme cases. I prefer to trade in the big and liquid markets... where I can come and go without making a dent in the bid/ask.
Big-Time players like hedge funds and Carl Ichan take 8-10% positions in a stock. Those are not "trading" plays.
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Day trade with TA.
Thinking they can outsmart the volatility in short term Trading ( aka playing with noise).
Thinking they can outsmart the volatility in short term Trading ( aka playing with noise).
Just download a random number generator online, run it and assume one pip up when you have the even number and one pip down for odd number. Another more fun way is go to casino and look at roulette, plot it as one pip up when it is dark, and one pip down when it is red.
Plot those data and compare with your favorite chart and see if there is any different ? You can use TA to predict the next move and try to make money out of it. The outcome is always the same.