Losing Because of Mistakes Flashcards
Psychological Mistakes beginners make
Psychological Mistakes beginners make
Beginners lose money due to their traders ignorance
Common ignorant beliefs that lead to losses:
- Perfect Setups
- Noise exists
- Most of time, either only bulls or bears can make money
Beginners lose money due to their traders ignorance
Common ignorant beliefs that lead to losses:
- Perfect Setups
- Noise exists
- Most of time, either only bulls or bears can make money
Beginners make BAD Management Decisions
Beginners make BAD Management Decisions
Confused GOALS - Plan to Swing Trade but they trade there swings like Scalps
Confused GOALS - Plan to Swing Trade but they trade there swings like Scalps
Confused GOALS - Plan to Scalp Trade but they then manage it like a Swing Trade this is a losing strategy
Confused GOALS - Plan to Scalp Trade but they then manage it like a Swing Trade this is a losing strategy
Confused Goals - If Scalp, manage it like a Scalp
Confused Goals - If Scalp, manage it like a Scalp
From the Market Cycle traders know that 10% of the Bars on the Screen are in a Strong BO
From the Market Cycle traders know that 10% of the Bars on the Screen are in a Strong BO
From the Market Cycle traders know that 90% of the Bars on the Screen are in a Channel or a TR
From the Market Cycle traders know that 90% of the Bars on the Screen are in a Channel or a TR
90% of Bars can buy or sell and make MONEY
Bad management is a major causes of losses for beginner traders
Must manage position size, risk and reward, if you fails at any of these steps you will lose money
90% of Bars can buy or sell and make MONEY
Bad management is a major causes of losses for beginner traders
Must manage position size, risk and reward, if you fails at any of these steps you will lose money
Bad Management causes most losses
Bad Management causes most losses
Good Management can save most BAD TRADES
Good Management can save most BAD TRADES
Good Management can allow me to Scale In to avoid a LOSS
Good Management can allow me to Scale In to avoid a LOSS
Lose Money - Experts lose but they’re Quick to React
I can minimize a loss by managing the losing trade well
Lose Money - Experts lose but they’re Quick to React
I can minimize a loss by managing the losing trade well
If I Enter by Mistake, GET OUT IMMEDIATELY
If I Enter by Mistake, GET OUT IMMEDIATELY
Bad Trade = Bad Trader’s Equation
Bad Trade = Bad Trader’s Equation
Bad Trade - Also need to consider Reward and Probability
Beginners like to scalp because risk is less, but reward is also less
Can win 60% of the time and LOSE MONEY!
Bad Trade - Also need to consider Reward and Probability
Beginners like to scalp because risk is less, but reward is also less
Can win 60% of the time and LOSE MONEY!
Bad Trade - Opposite Trade is Often GOOD!
Low Risk usually means low probability, minor reversal means low reward
The Math is better to Sell here on this chart
Bad Trade - Opposite Trade is Often GOOD!
Low Risk usually means low probability, minor reversal means low reward
The Math is better to Sell here on this chart
In addition to taking bad trades, Beginners manage their trade very BADLY
In addition to taking bad trades, Beginners manage their trade very BADLY
Another mistake beginners make is they see the trend and know its going down and they want to get short and what they will often do is wait for a very big climatical bar and then enter to go short thinking the momentum is going to still carry on down.
But the Climatical bar was an Exhaustive move and the Beginners then get disappointed by the follow-through and exit for a lose on a give bar
Another mistake beginners make is they see the trend and know its going down and they want to get short and what they will often do is wait for a very big climatical bar and then enter to go short thinking the momentum is going to still carry on down.
But the Climatical bar was an Exhaustive move and the Beginners then get disappointed by the follow-through and exit for a lose on a give bar
Beginners want low risk and want high probability; and they equate momentum with probability, which it can be but I must consider the context in order to determine how valid that momentum is
And from there I can decide if the trader’s equation risk is worth it for entering a trade
Beginners want low risk and want high probability; and they equate momentum with probability, which it can be but I must consider the context in order to determine how valid that momentum is
And from there I can decide if the trader’s equation risk is worth it for entering a trade
a Beginner Trader Loses Money by not doing what he needs to do
Before he enters, he knows the probability is low because of no bull bars for 8 bars and the bear trend
a Beginner Trader Loses Money by not doing what he needs to do
Before he enters, he knows the probability is low because of no bull bars for 8 bars and the bear trend
a Beginner Trader loses money on good trades due to BAD MANAGEMENT
a Beginner Trader loses money on good trades due to BAD MANAGEMENT
a Beginner Trader loses money on a Good Trades due to use the wrong stop
Always using an Appropriate Reasonable Stop yields GREAT trade management
*Take a trade with the correct STOP and TAKE PROFIT and go for a walk
a Beginner Trader loses money on a Good Trades due to use the wrong stop
Always using an Appropriate Reasonable Stop yields GREAT trade management
*Take a trade with the correct STOP and TAKE PROFIT and go for a walk
Lose money on Good Trades from EXITING TOO SOON
Lose money on Good Trades from EXITING TOO SOON
Avoid Big Losses by ALWAYD FOLLOWING THESE RULES
Avoid Big Losses by ALWAYD FOLLOWING THESE RULES
Most Important thing you can do to protect a big loss is to have a protective stop in the market NOT in my head
A stop protects me from myself
A stop in my head tends to stay in my head and not in the market and this results in taking a loss far greater than I should ever take
Most Important thing you can do to protect a big loss is to have a protective stop in the market NOT in my head
A stop protects me from myself
A stop in my head tends to stay in my head and not in the market and this results in taking a loss far greater than I should ever take
It is natural for a Trader to be hopeful as it is human nature but being hopeful when the market is telling me otherwise is another thing
Trade what the bars tell me
It is natural for a Trader to be hopeful as it is human nature but being hopeful when the market is telling me otherwise is another thing
Trade what the bars tell me
It is hard for a Trader to admit when they’re wrong - Nobody likes a QUITTER
It is hard for a Trader to admit when they’re wrong - Nobody likes a QUITTER
NEVER LOSE SIGHT OF YOUR GOAL = MAKE MONEY!
NEVER LOSE SIGHT OF YOUR GOAL = MAKE MONEY!
Greatest Fear = Death (Blown Account)
Greatest Fear = Death (Blown Account)
There is ONLY one thing a Trader can do to consistently make money and THAT IS TO LEARN HOW TO TRADE
There is ONLY one thing a Trader can do to consistently make money and THAT IS TO LEARN HOW TO TRADE
Eat what you KILL - There is no trading GOD to save you
Eat what you KILL - There is no trading GOD to save you
Low Risk = Low Probability or Small Reward (How a Beginner manages the trade)
Low Risk = Low Probability or Small Reward (How a Beginner manages the trade)
Low Risk = Low Probability or Small Reward (How an Expert manages the trade)
Low Risk = Low Probability or Small Reward (How an Expert manages the trade)
Great Scalpers win 90% of the time (this is difficult to do)
Great Scalpers win 90% of the time (this is difficult to do)
Great Scalpers win 90% of the time (this is difficult to do)
Great Scalpers win 90% of the time (this is difficult to do)
