5 Key Pitfalls to Avoid in Trading Plus How to Avoid Them

there are various pitfalls involved in trading. However, If you get well-educated with trading and trade with a good trading system then you can avoid most of them. Other pitfalls will be learned over time. But here are five principal ones.

 

  1. Not having A broker you’re comfortable with.  Some brokers, Particularly in options trading, Make it so hard to place a stinking trade(we use contingent orders most time) that it discourages trading. It’s not worth using those brokers. One in particular I’m thinking of makes you login with the key card (Never lose that key card–you might as well tattoo it to yourself!).  Then they make you jump through multiple hidden steps just to place one stinkin contagion order.
  2. You got to know exactly what you’re doing. You need to know exactly where you are going to enter and exactly where you are going to get out. You need to know exactly where you’re going to place your initial stoploss as well.  Those who wing it trading will always lose.  This is why you need a good trade system.
  3. Those who do not have an exact money management position size amount for every single trade will lose. If you are inconsistent in your position sizing especially if you like to go for the”jugular” you will not make money overtime.
  4. Those who do not practice their trading system to where they may get a “success habit” Will make mistakes in real time that will cause them to lose. And the problem with that is that most get so emotional about it that they do not analyze their mistakes and assume a good trading system is faulty or assume that they are just a general failure in life and never be successful… …  And that’s too bad because many have lost out on millions, Hundreds of millions and maybe even billions by giving up on A good trading system overtime because they never learn it right in the first place! You must practice your trading system!  And you must do so with real money albeit super tiny position sizes until you’ve work the bugs out. After which you can assume normal position sizing.
  5. Those who lack simplicity or those who lack discipline to simply execute their trading system and fiddle around with”New ideas” in real-time will fail.  You do not want to do anything that is not preplanned in trading the markets.

Try to figure it out on your own or take the shortcut and use 20 years worth of options trading genius:

slingshot3.0

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