what are the two worst things a trader can do?

[murray t turtle]

1) Predict.
2) Unaware of doing (1)

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Good points SKY Chief; not every long goes to the sky, or every short as LEH, DAL, GM . NOT a prediction or a bet. LOL.

 

[murray t turtle]

the answer is:1. chase a woman
2. chase a stock

they both result in the end in a loss.

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Good advice usually.
Two exceptions. [1]If its hits your signal, like IBD notes ,do not quibble over a quarter +miss the move.Updated version says ''or decimal equiv...'' Prefer the older one .LOL

[2] IF the woman is a proved trusted, attractive friend; discretion may suggest some sort of good move.NOT a prediction or a suggestion a turtle type makes a rabbit chase move LOL. I do not consider a kind warning like ''never require a man to read your mind'' a chase; its a wise warning against dumb drama .......

 

[themickey]

Having a shit while the market is moving fast in the opposite direction to your positions.

Arguing with the Trolls of ET Instead of being more productive with your time.

 

[murray t turtle]

1) trading too big for account size & knowledge IE not managing risk
2) mistaking high probability for certainty

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I've said the same, dealmaker; except i noted it= dont confuse a high probability with infallibility [ prediction] .NOT a predicition or a bet/gamble LOL

 

[lawrence-lugar]

I would say being unhedged, or having no backup safety plan,

And relying on rational thought to stick with a trade ...those two things will make your acct slowly, or quickly, dissipate;

I always say it...Trading is part art, part science -- each new day in the market is a unique ratio between those two,
It takes a skilled trader to realize what's happening and unfolding in real-time in the daily market DOW/SPY/SPX chart,

I personally like to refer to the daily market chart as the Macro Micro, because they're both the same thing in essence...a Micro timescale, but the Macro trend(s)

 

[i960]

1. FOMO/Loss Aversion.
2. Need to be right.

 

[learner2007]

what are the two worst things a trader can do?

1. Never take a laxative just before the market opens.

2. Never take Viagra just before the market opens.

Never take Viagra and a laxative together. You won't
know if you're coming or going.

 

[JackRab]

1. not do anything
2. do too much

 

[Sweet Bobby]

1) Think that you actually know something
2) Thank that somebody else actually knows something

 

[victorycountry]

1) no hedging - stop loss isn't an optimal hedging. People who use stop loss can only make break-even at best. When you hedge price risk, it means your position is 'safe' regardless of price fluctuation. So definitely stop loss is not a hedging because when price hit it, you position will be closed automatically.

2) trade against the trend - you go against the trend and you blow up your account