“When a beginner wins he feels brilliant and invincible Then he takes the wild risk and loses everything.”
― Alexander Elder, Trading For A Living
- The first problem is uncontrolled emotions. You don’t have emotional discipline and because of that, you get caught in a vicious cycle of greed and fear.
- Your position sizing is large. You’re risking the money that you can’t afford to lose. It creates stress and because of that, you make silly mistakes while trading.
- You’re not willing to learn from the mistakes. You’re repeatedly making the same mistakes.
- You take a trade on hope without any knowledge of technical analysis.
- Overtrading and revenge trading are the greatest sins of intraday trading but you’re committing that again and again over again.
- You treat trading as a get-rich-quick scheme, not as a business.
- You try to cover all of your losses in a single day and because of that, you lose more money.
- You don’t have any understanding of trading psychology. You treat trading as a simple mathematical calculation.
- You don’t close losing trades in hope that the market will reverse in your favor.
- You don’t have control over your actions. You act randomly buying and selling stocks as per your feeling.
Suggestive Reading: Trading for a Living: Psychology, Trading Tactics, Money Management By Alexander Elder