Top 5 Trading Mistakes

Over the years I have seen some repeated mistakes new traders make, and most are relatively easy to avoid if you are disciplined. Before I get into my list of the top five trading mistakes, I’ll mention one more that applies to trading as we move closer to the 4^th of July holiday and the summer doldrums. In holiday markets, volume tends to be quiet at times, and that means markets can whipsaw, especially overnight. One large order can move a market significantly. We often see a lot of “noise” going on as we head into a holiday that might not be a true reflection of market fundamentals. It’s a time that’s harder to trade, and might not be the best time to initiate new positions if you aren’t an experienced trader. But if you do want to trade, avoiding the pitfalls is even more important. (more)