T2W Bot

Staff member
1,441 50
In my nearly 20 years in this industry, and almost five years of teaching, I have come to the not-so-startling conclusion that there are two types of traders in the world – those that make money and those that don’t. I call these two groups the 90 percenters (the money losers) and the 10 percenters (the money makers). While these statistics on trading success are open to debate, they make it easier to demonstrate some common mistakes that unsuccessful traders habitually do.
A very common mistake that the 90 percenters do is change their reason for being in the trade. In every class I teach, this question/example is always asked, and without doubt, most of the students laugh and admit to making this very basic mistake.
When determining a trend, a trendline is often used to help traders enter or stay in a trade. The mistake is this: Staying in a trade after your trendline is broken, and drawing in a new, flatter trendline. (Flatter trendlines are bad, in both up and down...
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chrisaw

Newbie
3 0
High Rick, have just joined today. I am not trading yet as I am reading all I can before I get started on a demo acc. I have just read your 90% mistake and it makes clear sense to me. thanks for the insight.
 

0007

Senior member
2,219 553
Nothing new, revolutionary or ultra-clever here. Just plain simple good old-fashioned advice that can save your trading ar$e. IMHO Rick's 2 pages are well worth taking on board.

I just wonder if they are too unsophisticated and straightforward for many people?
 

Joey25

Established member
872 236
This reminds me of DeMark's Sequential Method - he talks about "recycling", which is in effect a refusal to ever accept you're wrong and seems to go hand in hand with these "catching-a-falling-knife" techniques.

Good article.