3 Mistakes Every Successful Trader must Avoid!

I have done this a long time, and it took me a long time to become confident that I can trade for a living. In my career which has given me the opportunity to live and work in the different financial centers around the world – London, New York, Singapore, Hong Kong and Seoul – I have had the opportunity to meet, work with and learn from some of the best traders in the world.

One of the most interesting things I have noticed is that regardless of where, and when, traders of all creed and experience make the same few mistakes. If you have been trading for a while, it is almost a certainty that you would have made some, if not all, of these mistakes.

The first step to becoming better is to understand what are the mistakes that a trader will inevitably fall prey to. So, what are the common pitfalls you must avoid?

1.

Making money is not difficult but losing money is infinitely easier.

If you have been trading a while, and you are not rich beyond your wildest dreams, but you haven’t yet given up, you will be very familiar with this.

You keep trading because you have experienced days of profits and spurts of intermittent success. Unfortunately, all these strings of gains invariably end with a few days of huge losses, which may even end up crippling your bankroll. You will then regroup, put in more capital after convincing yourself it is just bad luck, and repeat the process. Rinse and repeat until you get worn down and give up or you wake up to the fact that there is a better way to do this.

To succeed, you need a process to stop yourself from suffering those few days of crippling losses.

Don’t take my word for it. Almost every trading legend or market wizard, when interviewed about the secrets of their success, will tell you a story about how they almost bankrupted themselves which led them to resolve to implement a process that will stop them from repeating this same mistake ever again.

“Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.”

– Paul Tudor Jones  

2.

Overtrading. Sometimes the best trade is to have no trades.

Being market neutral is also a market view. You can’t expect to have an idea of where the market is going ALL the time. Don’t expect this of yourself and don’t try to be a hero.

It is okay to have no positions and to take a step back till a clearer picture emerges and a better risk vs reward opportunity arises.

3.

Thinking that you can make money in all market conditions.

If I were to come to you to sell you a black box with a secret trading algorithm and if you have any sense at all, you will ask me a set of questions similar to the following

  • In what market conditions does it work best?
  • In what market conditions does it stop to work or even lose money?
  • Where is the failsafe switch where it knows when to stop trading?

Yet, of the many traders whom I have met – both professional and the retail variety – very few of them actually ask these questions of themselves. They expect to make money come rain or shine, in

bear and bull markets, in volatile and quiet markets, in trending markets as well as range-bound

markets. They expect to make money every day that the market is open regardless of their health

and their mental state. They expect not to have to switch themselves off when they are, after all,

human. Is that a rational expectation to have of yourself? If Djokovic tells you he can win every single  tennis match that he plays on every surface, week in and week out, all year round, would you think he’s gone crazy?

Do you make these mistakes? If you do, and realise that you do, then you are ready to change for the better and become better.

ARE YOU READY TO LEARN MORE?

Trade Opportunity: USD/CNH seems poised to test 6.35 levels

USD/CNH Daily Candlesticks & Ichimoku Chart  SHORT 

USD/CNH seems poised to test 6.35 levels. Positive developments from the trade talks should do it!

 

Vee, our Founder/CIO highlights patterns/formations on selected chart(s) every week which may have the potential to turn into trading opportunities. These charts are first sent out on Monday of the week to members subscribed to THE LONG & SHORT OF IT, which helps you to filter out the noise and condense only what’s important in the markets for the week ahead.

Disclaimer: The views and opinions expressed in this material do not constitute a recommendation by TrackRecord Pte. Ltd. that any particular investment, security, transaction or investment strategy is suitable for any specific person. No part of this material may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of TrackRecord Pte. Ltd

Trade Opportunity: With widespread of fears of an impending recession and calls for a bear market coming into 2019, the market is generally under-invested.

NASDAQ Composite Index Weekly Candlesticks & Ichimoku Chart

With widespread of fears of an impending recession and calls for a bear market coming into 2019, the market is generally under-invested. The Nasdaq has now pierced through the bottom of the weekly ichimoku cloud and a close above the cloud will likely lead to new highs this year.

Vee, our Founder/CIO highlights patterns/formations on selected chart(s) every week which may have the potential to turn into trading opportunities. These charts are first sent out on Monday of the week to members subscribed to THE LONG & SHORT OF IT, which helps you to filter out the noise and condense only what’s important in the markets for the week ahead.

Disclaimer: The views and opinions expressed in this material do not constitute a recommendation by TrackRecord Pte. Ltd. that any particular investment, security, transaction or investment strategy is suitable for any specific person. No part of this material may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of TrackRecord Pte. Ltd

Work for Money, or Make your Money work for you

The world is full of people who work for money (well, of course, there are some who don’t need to work for money but those are in the minority) and have dreams of not having to do that at some point of their lives.

Most of them, however, will continue to spend most of the productive years of their lives working for money because they have no clue how they can achieve those dreams besides continuing to work to get enough money to not have to worry about money. Seems paradoxical and sad, doesn’t it?

The way you can afford to stop working for money is to either have a lot of money or to learn to make your money work. In the absence of a lottery win, most people can only hope to achieve the latter. However, many people, for some reason or other, often postpone that decision far into the future. They tell themselves, they will learn when they have “enough money” or when they are ready to retire.

WHAT?

The whole point of learning to make your money work for you is so that you CAN retire sooner! To paraphrase Mother Theresa – yesterday is gone, tomorrow is too late, and the best time is now

Let us begin!

“THE SOONER YOU GET YOUR MONEY TO WORK FOR YOU, THE SOONER YOU CAN STOP WORKING! ”

It’s never too early to manage your money wisely and the sooner you begin, the sooner you will achieve your dreams of being free from financial worries.

This is what I think learning to trade and invest is all about.

It is about putting your money to work, and as they say, money never sleeps! So, it can be doing all the work for you, while you can be free to pursue your dreams and check items off your bucket list!

ARE YOU READY TO BEGIN?

Trade Opportunities: Bitcoin was stealthily trying to break above the daily ichimoku cloud but seems to have failed for now

BTC/USD Daily Candlesticks & Ichimoku Chart

Bitcoin was stealthily trying to break above the daily ichimoku cloud but seems to have failed for now. A decisive break above will rekindle interest in the market, but for now, the winter continues.

 

Vee, our Founder/CIO highlights patterns/formations on selected chart(s) every week which may have the potential to turn into trading opportunities. These charts are first sent out on Monday of the week to members subscribed to THE LONG & SHORT OF IT, which helps you to filter out the noise and condense only what’s important in the markets for the week ahead.

Disclaimer: The views and opinions expressed in this material do not constitute a recommendation by TrackRecord Pte. Ltd. that any particular investment, security, transaction or investment strategy is suitable for any specific person. No part of this material may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of TrackRecord Pte. Ltd

Trade Opportunities: EURCAD, AUDUSD

AUD/USD Weekly Candlesticks & Ichimoku Chart    LONG

Strong candle on the weekly chart. Unless the lows are violated, dips should be bought going forward.

EUR/CAD Weekly Candlesticks & Ichimoku Chart  SHORT

Strong reversal candle on the weekly chart and price is now firmly below the weekly cloud. Retracements towards the bottom of the cloud would be good opportunities to initiate shorts.

 

Vee, our Founder/CIO highlights patterns/formations on selected chart(s) every week which may have the potential to turn into trading opportunities. These charts are first sent out on Monday of the week to members subscribed to THE LONG & SHORT OF IT, which helps you to filter out the noise and condense only what’s important in the markets for the week ahead.

Disclaimer: The views and opinions expressed in this material do not constitute a recommendation by TrackRecord Pte. Ltd. that any particular investment, security, transaction or investment strategy is suitable for any specific person. No part of this material may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of TrackRecord Pte. Ltd

Trade Opportunity: NASDAQ

Nasdaq Index (IXIC) Weekly Candlesticks & Ichimoku Chart   LONG

 

Vee, our Founder/CIO highlights patterns/formations on selected chart(s) every week which may have the potential to turn into trading opportunities. These charts are first sent out on Monday of the week to members of our weekly subscription product – “CIO’s Week Ahead Update”, which helps to filter out the noise and condense only what’s important in the markets for the week ahead.

Disclaimer: The views and opinions expressed in this material do not constitute a recommendation by TrackRecord Pte. Ltd. that any particular investment, security, transaction or investment strategy is suitable for any specific person. No part of this material may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of TrackRecord Pte. Ltd