Top 5 mistakes traders make

TOP 5 MISTAKES TRADERS MAKE

Some traders make consistent profits. What’s their secret and how do they do it? The real question we should be asking is – what is it that they don’t do? Here are some of the common mistakes our traders tell us they made - so you can avoid them. Keep in mind, that this presentation is for informational purposes and should not be regarded as a recommendation or advice.

5 Mistakes of Trading and Solutions

•  Mistake 1 - Lack of Methodology •  Mistake 2 - Lack of Discipline •  Mistake 3 - Unrealistic Expectations •  Mistake 4 - Lack of Patience •  Mistake 5 - Lack of Money Management

Final Trading Tips

Overview

Mistake 1 - Lack of Methodology

•  A consistently successful trader always has a defined trading methodology, which simply means a clear and concise way of looking at markets - guessing or going by gut instinct won't work in the long run

•  If you don't have a defined trading methodology then you won’t

know what constitutes a buy or sell signal

•  The solution is easy - write down your methodology. Define which analytical tools you will use - whether it’s Trading Central Analysis levels, or any other indicators. And take the time to define what constitutes a buy signal, a sell signal, your stop loss, and instructions on exiting a position.

Mistake 2 - Lack of Discipline

•  You must have the discipline to follow your method

•  Success often comes to those who consistently apply a proven methodology

•  Define a trading methodology that works best for you and follow it.

Mistake 3 - Unrealistic Expectations

•  It is possible to experience above-average returns trading your own account. But it's difficult to do it without taking above-average risk

•  Did you know that the average hedge fund return in 2014 was 2.88%?

•  These goals may not be flashy but they are realistic, and if you can learn to live with them - and achieve them – you may increase your chances of being a profitable trader.

Mistake 4 - Lack of Patience

•  Markets trend only 20-30% of the time. The other 70-80% of the time the markets are not trending in one clear direction.

•  All too often, because trading is inherently exciting, it's easy to feel like you're missing the party if you don't trade a lot. However, over-trading may see you making trades of lesser quality.

Mistake 5 - Lack of Money Management

•  Professional traders tend to limit their margin on any given position to 1-5% of their portfolio. If we apply this rule, then for every $5,000 we have in our trading account balance, we risk only $50-$250 on any one trade

•  Many traders begin to trade without sufficient capital in their trading account to cover the markets they choose

•  If you have a small trading account, then you may consider small trades. You could accomplish this by trading fewer contracts, or trading mini lots

•  One of the keys to becoming a consistently successful trader is longevity.

Final Tips

•  Be disciplined, trade the facts not your emotions

•  Be realistic, and not greedy •  Use stop loss and take profit rates to manage

risk •  Make use of limit orders and price alerts to

enter the market •  Continue your education.

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Thank you and Trade SAFE