Saturday, August 18, 2012

Top commodities trader: The seven big mistakes new traders make

There are many reasons why 80% to 90% of novice traders end up losing money. Among the reasons include:

  • Being under capitalized
  • Taking way too much risk (expressed as a % of capital per trade)
  • Attempting to pick tops and bottoms
  • Chasing markets
  • Becoming obsessed by a scenario (e.g., Silver MUST go up)
  • Trading with trading range
  • Being compelled to become a day trader

I believe the above reasons, in composite, account for 80% of the failure among pedestrian traders. (more)

No comments:

Post a Comment