In December of last year, I asked top-performing traders one simple question:
“What early career mistakes will you never make again?”
The result? 8 profound mistakes everyone (from beginning trader to market killer) should avoid in their career.
Let’s dive in:
1. Averaging Down
Too often, traders choose to buy more of their position as the trade goes against them. This is a crucial mistake! Instead, you should be focused on cutting losses when trades go against you. Your returns will improve significantly. This was a key lesson from William O’Neil in last week’s edition as well. You can read that here.
2. Trading on Tips
Good traders rely on their OWN homework and preparation to beat the market consistently. Failing traders often rely on other people & tips to cheat their way through the market. Here’s what US Investing Champion Leif Soreide had to say:
3. Arguing With The Market
No matter your experience level, you MUST understand that the market is always right. It doesn't know or care about your opinion. The best traders know the only thing that matters is trading with the trend.
4. Trading Like Someone You’re Not
We all think we need to trade like someone else to become great. The truth is, your results will always be better when your personality aligns with your goals. This is why it’s much better to pave your own path from the beginning.
5. Improper Position Sizing Into EPS Report
This mistake is common for almost everyone in the market as greed gets in the way of proper judgment. Always focus first on managing your risk and let the stock's action guide your decision making process.
6. Letting Ego Get In The Way Of Good Trading
Believing you are a 'natural' at anything can be very dangerous – I know I felt this way after beginning my trading career in 2020. Like anything in life, becoming a professional takes time (and a lot of it!).
7. Not Trusting Your System
As I said in mistake 2, the best traders trust their OWN research and planning. Hesitation and second-guessing have no place in the stock market, especially if you are trying to make millions. Here is Dennis' lesson:
8. Playing The Comparison Game
Not only will comparing yourself to others waste energy, it places your emphasis on the wrong thing. Rather than focusing on others, you should be competing against your previous self. Be 1% better today than you were yesterday.
Bonus Mistake 9: Not Prioritizing Health
As Ben said below, it is easy to put your health on the back burner while you build. Clearly, this is a huge mistake for many and was for him as well. Prioritize your health and results in other areas of life will follow.
So, there it is. If you’re struggling as a trader, ask yourself if you’re making of the mistakes above on a consistent basis.
Hope you’ve found this weekend’s Upside Unlimited edition valuable.
Talk next week,
Greg
Other resources to study:
2020 Best Charts: https://gregduncan.gumroad.com/l/wmfsd
2021 Best Charts: https://gregduncan.gumroad.com/l/2021
2022 Best Charts: https://gregduncan.gumroad.com/l/2022
Earnings Gap Up Mastery Free Email Course: https://upsideunlimited.com/earnings-gap-course
Consider Becoming A Paid Upside Unlimited Subscriber: https://upsideunlimited.com/sub