FROM HERO TO ZERO: A COMPLETE GUIDE ON HOW TO BLOW YOUR ACCOUNT
Happy new trading week, friends! As you can tell the text above is a satire. However, unironically some of us still make the mistakes above that take you from Hero to Zero. What are the most common mistakes we can avoid in our trading journey? Let's take a look.
1. Taking revenge or jumping into the market because you think you found the trade of your life is the worst thing you can do to yourself. Stay unbiased and keep that clear state of mind.
2. Don’t forget about Stop losses, losing 1% of your account is recoverable, but when you go into more than 10% drawdown, it gets mathematically and psychologically impossible to get back on the horse.
3. Take one trade at a time. The profits will come, focus on the journey.
4. Having trading plan is important but sticking to it is even more crucial. Most losses that I’ve seen come from trades that have been out of the trading plan and didn’t meet one the several entry criteria.
5. There are really good authors on TradingView, but once again they share “Opinions”. Always have your perception of market and stick to it.
6. If you need confluence, please stick to TradingView. The platform has a good ratio of professionals on it, unlike Reddit or any other forums where a 13 year old will convince you that lithium ion batteries are the future.
7. Check your fundamentals, they are as important as technicals.
8. Indicators are fine to use, but they’re like some authors, you still need your own voice of rationality.
9. Some traders spend too much time on external factors, looking for the most perfect trade of their lives, which will, unfortunately, never come. Work with the available market conditions.
10. Yes, having a larger screen does help. Dropping 10.000$ on equipment doesn’t help. This could have been an extra 1.000$+ per month to your income if it was deposited to your account. Keep it optimized.
1. Taking revenge or jumping into the market because you think you found the trade of your life is the worst thing you can do to yourself. Stay unbiased and keep that clear state of mind.
2. Don’t forget about Stop losses, losing 1% of your account is recoverable, but when you go into more than 10% drawdown, it gets mathematically and psychologically impossible to get back on the horse.
3. Take one trade at a time. The profits will come, focus on the journey.
4. Having trading plan is important but sticking to it is even more crucial. Most losses that I’ve seen come from trades that have been out of the trading plan and didn’t meet one the several entry criteria.
5. There are really good authors on TradingView, but once again they share “Opinions”. Always have your perception of market and stick to it.
6. If you need confluence, please stick to TradingView. The platform has a good ratio of professionals on it, unlike Reddit or any other forums where a 13 year old will convince you that lithium ion batteries are the future.
7. Check your fundamentals, they are as important as technicals.
8. Indicators are fine to use, but they’re like some authors, you still need your own voice of rationality.
9. Some traders spend too much time on external factors, looking for the most perfect trade of their lives, which will, unfortunately, never come. Work with the available market conditions.
10. Yes, having a larger screen does help. Dropping 10.000$ on equipment doesn’t help. This could have been an extra 1.000$+ per month to your income if it was deposited to your account. Keep it optimized.