Seven Deadly Trading Mistakes - Part Seven
In this last article of the series, I'm going to look at what is
perhaps the biggest mistake of all, and yet should be the
easiest to overcome.
Mistake Number Seven - Not Taking Action
For every trader who opens a brokerage account and starts
placing trades, there must be a hundred more who had every
intention of doing so, but for one reason or another, never
actually took that step.
It's a blindingly obvious statement to make I know, but you
cannot make a profit from the markets if you don't actually
start trading them! Why do so many potential traders buy the
books, ready the forums, and study the charts, but never
actually place a trade? The most common reasons I hear are these:
Fear "I'm worried I'm going to lose to much money". If you trade
on a simulator, you can't lose a penny. Today's technology makes
simulated trading more accessible and more realistic than ever.
Having a go risk-free will either give you the confidence to
take the next step, or will prove to you that trading really
isn't your thing. Either way, you've got nothing to lose by
trying.
Time "I don't have time to sit in front of a computer all day
learning this stuff". There are stocks and futures markets in
every developed country in the world. With the wonder of the
internet, we can trade them all. That means that when you have
some spare time, there is a market open somewhere. There's no
need to give up the day job to try out trading.
Money "I don't have enough cash to trade with". As trading
becomes ever more popular, and brokers try and reach out to
bigger audiences, minimum account levels are falling. If you
have a few hundred spare dollars (US), you can start trading.
Having said that, never trade with money you cannot afford to
lose. If losing your starting capital is going to put you on the
streets, you really shouldn't be trading with cash. However,
there's no reason you can't paper trade while you save up that
pot.
No Confidence "I don't think I can do this, it's not for me". If
you really think trading is not your thing, of course there is
no point in pursuing it. If however you simply fear that you
won't succeed for whatever reason, then you could be missing out
on a great opportunity for nothing. Get yourself some free
charts and a free simulator, or even a pen and paper, and have a
go. If you don't try, you'll never know!
Action: Ultimately, only you can take the next step to becoming
a profitable trader. It's a sad fact that many who read this
will never take their trading dream further. But those few that
do, will be well on their way to success, profit, and trading
freedom.
That's the end of this seven part Seven Deadly Mistakes series.
I hope you've enjoyed reading it as much as I've enjoyed putting
it together.