Everyone wants an edge in life. For example, I watched Carlos Alcaraz battle his way back to win the French Open this summer. And he has a huge edge as a tennis player.
Psychology is just as important as strategy in stock trading. The market will test your patience, discipline, and emotional control constantly. If you don’t manage your mindset, no amount of technical analysis will save your account. Here are the 4 psychological traps every trader should learn to avoid.
With today’s FOMC meeting, there’s likely going to be volatility in the market. But here’s a secret for you. It’s what separates the pros from the amateurs: Discipline isn’t optional — it’s the foundation of every successful trader’s results. A trading plan keeps you focused on strategy instead of emotions. Without one, you’re reacting to markets instead of executing a process.
Yesterday, I told you how most traders sabotage themselves. These mistakes — emotional trading, chasing hype, no plan, no discipline, no risk control — don’t feel big in the moment. But a small mistake in a volatile market becomes a giant problem in seconds. Today, let’s talk about the one thing that separates survivors from blow-ups. If you want to stay in the game, you have to treat risk management like your job.
I’m not just a trader, I’m a teacher. My mission is to help you become a successful trader by giving you a look over my shoulder to see how I’ve done it. So this week, I’m going to cover some of the most common mistakes traders make … and how you can avoid them.
Chief Strategist of Strategic Fortunes and three elite services
Founder of Weekend Trader
Chief Investment Strategist of Money & Markets
Research Analyst
Director of VIP Services
Founder of TRADEMONSTER.ai