The most frustrating part of trading is losing money when you know you didn’t have to. It’s not the normal statistical loss that hurts, it’s the ones you could have totally prevented; entirely your fault. These are the losses that are the result of trading mistakes. You need to learn how to prevent them, because the key to long-term trading success is preserving your risk capital so that you can take advantage of the high-probability trade setups when they arise.
- Mistake: Thinking too much
One of the most common mistakes I see traders making, is simply thinking too much. People tend to make trading much harder than it is. I get emails nearly every day from traders who clearly are over-thinking the market and making things more complicated than they need to be
Analysis-paralysis is something I discuss in-depth in an article I wrote titled “A Cure for Trader’s Analysis-Paralysis”. Reading that article will give you some good insight into how you can stop thinking so much and start trading instead. Obviously, in the early stages of learning how to trade, you will need to spend more time studying a course and studying the charts, so that you can develop yo
- Solution: Stop thinking so much