Thursday, 21 March 2013

5 Mistakes To Avoid When Trading Financial Markets

It’s a well known fact that 95% of “retail” traders (i.e. the small speculators) will lose money trading the financial markets.  Little wonder then that small speculators are referred to as “dumb money” by investment professionals and monitored as a contrarian indicator for future price direction.

It is not simply that the little guys choose the wrong trade, there are a number of classic mistakes that are repeated over and over again that mean losing is all but a certainty, leaving the 5% of winners and the professionals to clean up.

This article highlights what we believe to be the top five mistakes that traders make that can be avoided and increase your odds of success dramatically. 

1. Not Planning Your Trades

2. Lettings Losses Run and Closing Winners Too Early

3. Chasing Losses

4. Overtrading

5. Staking Too Much

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