Trading Coach Advice – Most Easily Fixed Mistakes
Of course when you start any new pursuit you are going to make mistakes. Trading is no different. There are many common mistakes that traders will make as they begin to learn about how to trade. The best way to approach the task of learning to trade is to understand that it is natural to make mistakes and be ready to fix those as you recognise them in yourself.
I recently interviewed a number of trading coaches and mentors and asked them what are the common mistakes they see when coaching new traders. These coaches and mentors are professional traders that also coach private clients, so they are in a great position to see the mistakes that people make as they progress from beginners to skillful traders. It is only those that continue learning and improving their performance that get to the point of making money.
So what are the mistakes that you need to look out for and try to avoid as a new trader. The first mistake is that new traders don’t have a trading plan, or if they do it have one it isn’t complete. A trading plan is your game plan and tells you what you should do in different situations. A trading plan will help you when you are under pressure and have to make a decision, as you have already thought about it and will have determined the best action in the situation.
Another mistake that people new to trading make is being impatient. Of course it is exciting to begin trading and we would like to find the opportunities to trade. It is easy to try to find a trade and take one even though you really should not have. The people that force trades will take a trade that almost meets the criteria instead of waiting for the ideal setup. One of the lessons to learn is that you must have patience and wait for the setups.
Stops are also a common problem. That is setting the stops too close to the close to the price that they bought. It is the fear factor. These people are worried about losing their money and to protect their money and prevent a loss, they will set a very tight stop. They have not yet learnt that you must allow a trade to develop and setting a very tight stop will just get you out of a trade before it has had a chance to develop.. A trading coach can be a great way to speed up your learning of how to trade.
Tags: Trading, trading advice, trading coach, trading mentor
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