Continue reading...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...
Last edited by a moderator: