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You’re excited about the possibility of making consistent profits in the markets.
You have the freedom to do the things you love, better provide the needs of your family, and never be a slave to your job again.
Or perhaps, you just want to know you’re the top 5% of traders who consistently beat the markets.
Whatever the case is, you know it’s a definite possibility — but it isn’t easy.
So to get you started on the RIGHT track, you must avoid these 5 costly mistakes that most traders are unaware of…
You’re trading the wrong timeframe
Here’s the thing…
You probably have a full-time job or you’re running your own business — working 10 to 14 hours a day.
After a grueling day at work, you go home and rush to your trading platform.
You scalp the markets for a few pips while having dinner in front of your monitor.
Before you know it, you’re feeling the heat as your position is moving against you — and your losses are getting LARGER.
3 hours have passed…
It’s almost bedtime, but you’re in a losing trade and refuse to take the loss.
So, you hold up another hour and see if it improves.
Eventually, you bite the bullet and take the loss so you can go to bed.
The next day, you wake up for work and rinse repeat the process over again.
And all these while you miss the opportunity to spend time with your family and friends.
Is this what you want?
So here’s the deal…
If you have a full-time job, don’t day trade or scalp the markets — it’s a sure way to kill your relationships and mental health.
You don’t have this most important thing in trading
I used to think…
Trading is 80% psychology.
Trading is about following your plan.
Trading is having proper risk management.
And it’s true.
It’s USELESS if you don’t have an edge.
Let me explain…
Imagine you’re going to gamble in a casino.
You adopt proper risk management and keep your bets small.
You psyche yourself up with positive affirmations like…
“Lady Luck is shining on me!”
“I will make a killing today.”
Well, guess what?
You’re still going to lose.
Because you don’t have an edge over the casino.
Without an edge, even the best risk management and psychology won’t save you.
The bottom line is this…
If you want to be a consistently profitable trader, you must have an edge.
Loneliness is killing you
Remember when you were in school?
You had a teacher for every subject to learn from.
Outside of classes, you had a coach (whether it’s football, basketball, and etc.) to provide feedback so you can improve your game.
And even when you’re “chasing” the girl of your dreams, you have buddies (who are expert at the game), giving you advice, tips & tricks on how to win her over.
Clearly, at every stage of your life, you had someone experienced to give you feedback, advice, and knowledge.
But when it comes to your trading career…
…you’re doing it alone.
And by figuring things out yourself, you face questions like…
“Does this trading strategy work?
Do I have an edge in the markets?
How do I know what works and what doesn’t?”
Now, I’m not saying you can’t make it on your own.
You can… with hard work, determination and paying HUGE fees to Mr. Market.
How much time, effort and MONEY you’ll SAVE if you have a mentor?
In case you’re unaware…
Paul Tudor Jones had Eli Tulis as his mentor.
Jerry Parker had Richard Dennis as his mentor.
Stan Druckenmiller had George Soros as his mentor.
Every one of these legendary traders had someone to guide them to take their trading to the highest level.
What about you?
You’re focusing on the wrong things — and no it’s not your strategy
Can you imagine building a house without designing a plan first?
I sure as hell won’t want to live in that house — not even for a night!
You don’t build a house without first drawing up a plan, a “blueprint” for how the house will look, where the rooms will go, and so on.
And it’s the same for trading.
Many people start by trying different strategies, patterns, indicators they might have learned online.
But, they don’t see the “bigger picture”, so these only get them limited results.
What you need is a process to follow, which serves as a “blueprint”, so you can see how every element fits together — just as a house plan shows you where every room in the house fits together.
You don’t have the correct expectations — here’s the reality
Let me share with you a secret…
During my university days, I had a dream of becoming a full-time trader straight after graduation.
No bosses to answer to.
No need to work for any company.
No need to participate in any politics.
My plan was to take my entire savings of $5,000 and borrow another $5,000 from my dad (for a total of $10,000) to trade full-time.
I figured if I could make $3000 per month, then it’s enough for me to survive and fulfill my dream.
And that’s what I did.
But 6 months into my “trading career”, things didn’t work out the way it’s supposed to.
Not only was I bleeding my trading account, I relied on my parents for financial support.
It’s then I realized I didn’t have the correct expectations to start with.
No proper skill set
Here’s the thing…
I attempted to trade full-time without having the proper skill set.
Let me ask you, would you allow a surgeon to operate on you if all he/she did was read a few books?
Lack of trading capital
If you think about it, I needed a return of 30% each month to meet my living needs (which isn’t realistic).
This resulted in the “need to make money” syndrome and caused me to break my rules — and led me to take on losses larger than expected.
Trading isn’t a get rich quick scheme.
It’s a money-making skill to grow your wealth steadily — in bull and bear markets.
At this point:
I’ve covered a lot in this post and shared with you some of the biggest mistakes I’ve made in my trading career — and how you can avoid it.
In my next post, I’ll share with you my 3 biggest secrets that transformed my trading completely (and it’s not trading psychology or risk management).
Leave a comment below and share with me the biggest mistake you’ve made in your trading career.
I look forward to hearing from you.