🔥🚨Classic Trader Mistakes🚨🔥
🛑• Navigating Against the Wind - Many futures traders have the reflex to short-sell in strongly rising markets (or to buy in strongly falling markets). This is based on a sentiment: "The market has risen so much that it will definitely come down." It is impossible to time the market. It is better to go with the trend. Even if the market were to decline after a very strong upward movement, it would likely decline little. The potential for gain is not interesting compared to the risk.
🛑• Turning Lead into Gold - Many futures traders tend to focus all their efforts on this elusive strategy that will turn lead into gold. All their trades will be winning trades. This strategy does not exist. Good strategies will always have a significant portion of losing trades. This is an important point to keep in mind. Once you cross this mental bridge, you will spend much more time thinking, for example, about how to perfect the management of your open positions.
🛑• I Want It All and I Want It Now - Trading futures is a marathon. Profits are built slowly over time, trade after trade (including a significant portion of losing trades). Even those highly admired traders in the City get their bonuses based on profits generated over at least one year.
The aspiring private trader, however, wants big profits and wants them next week. They will use the maximum leverage available and lose their money. Do not be tempted. If you are like most people for whom a year is a long time, and you lack patience, set very short-term goals. For example, X € profit per week. Working on small short-term goals works much better for most human beings.
