3 Most Common Trading Mistakes
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- Опубликовано: 19 июн 2024
- In this video David draws our attention to some of the most frequent mistakes that traders make. From fighting the trend and opening positions with unreasonably large sums to having stop losses too close, David discusses all these scenarios and shows how they unfold on real charts.
While not following the trend and placing stop losses are more technical tasks, how much money you put in a trend is something more psychological and this money management is often something traders underestimate. If you have a large position and every small move against it makes you feel a range of negative emotions then that increases the chance of a mistake.
So after watching the video you should be able to avoid these pitfalls and become both technically and psychologically a better trader. Write in the comments if you have any questions about the three mistakes and let us know what else you'd like to see David talk about.
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my top 3 mistakes ive learned.
1. Dont trade the second the market opens, give it a bit to set its course.
2. Never trade against the trend.
3. Be patient
Best advice I’ve heard so far!
Complete noob here but I’ve been making fair returns on the CFD side by trading against the trend. I generally pick anything where I can compare the months graph to the short term and it’s almost always right! Short term looks like it’s going up but I can see from the long term it will almost defo go down.
Facts!
gold usually shoots up when the market opens again after the weekend. then slowly go back down
A trader told me that if I dont sleep well when I have a trade running overnight, my risk is too big. That has been my best risk meter since
Great advice
jesse livermore qoted that, trade down to the soft pillow at night
i can't concentrate at other stuff when i have an open position
Very easy with a chart that's already drawn, not so easy when there's nothing but black space to the right.
yes in hindsight its all easy. Prediction value of a chart is very low
@Alex 163 you guys are so naive...do your research don't just settle on the first strategy that seems to work
Lesson 101: markets are cyclic so yes yes you can predict what happens next to the right (based upon the last impulse correction combination seen on the left).
Elliot Wave trading ( macro chart patterns) does this to some limited degree.
Learn to trade using Wave Trading ( micro chart patterns ) which is a superset theory (includes EW)
Absolutely allows you to predict next chart trend movement.
With common sense determine when best entry exit is to profit consistently
Checkout channel WE TRADE WAVES !!
😂
BornToDoIt legit all they need is divergence 💀💀
predicting horizontal support levels is easier.
(1) go with direction of market
(2) if more volatile set wider stops
(3) don't be emotional
(4) Bonus:trade small - survive to trade another day
Great summary CTNinjaCat!
don't be emotional is number 1
trade with high risk
Emotions and not putting it all on the line is key. Don't be greedy and try to be like these guys that risk their entire net worth and happen to get lucky and get rich, you won't be like them. You think you will but you wont. Most of them selling that dream are full of shit anyways.
"don't be emotional" i hope everyone read that
""...and people don't have the attention span these days"". Did he just call me stupid? You are godamm right!
The trend is your friend till it bends
As it's trending up you can set your stop up and up, thus locking in profits.
Unless you pick the literal top in the wrong direction (insanely hard to do unless you do so against resistances) you're golden.
Sounds like a poem
😂😂😂
... but only at the end.
rapping 213
My trade always flop the other way as soon as I buy. When I sell, it does the same thing. LOL
Cowwy seems like they know we are online lol
😂😂
Me too
I'm no expert on trading but I've heard that some stocks get dominated by institutional traders i.e. algorithms that make it very difficult for normal traders to make money. Perhaps finding stocks in play by retail traders would help? Best of luck in your trading journey!
Good advice. 90% of my trades turn against me the second I get filled, no matter how low I buy or how high I short. I used to use tight stop losses and buy huge lots and yes, they would take me out or cause me to panic. I had to learn to not be greedy and to buy small lots on each trade. My trading has improved drastically after using the same approach explained in this video. I only make 150.00 to 300.00 a day now on a 55K account, but it is better than losing 1000 to 3000 per day getting stopped out or selling during a panic.
If may ask how do you possibly an uptrend or down trend on the market though?
Look into Bill Williams's fractal trading
I’m an amateur but 150-300a day gains sounds awesome. That’s typically what some people get paid for a days worth of work lol
+Ever Clara yeah but he has 55,000 in his account which honestly I think he could do a bit better some get that having less than half of that in their account. I know some could do it having only 10,000 in their account. I mean heck I could probably do that on some weeks (gain around $1,000) having only 8,000 in the account especially when earning calls are hot. Helps a lot also if you have access to pre and after market hours.
Use Volume Profile and Market Profile.
I have been practicing on a demo account for a long time now and I can imagine that a big mistake many people make is to not practice first on a demo account.
Setting the stop loss too tight is definitely the first lesson I learned the hard way when I started trading.
this guy should be in a james bond movie
Haha good guy or villain?
Fallowing the trend, :)
or ... pirates of the caribbean playing davy jones
I thought this guy was james bond.
Reminds me of Pierce Bronson.... 007
I typically set my stops by subtracting the ATR * 1.5 from the price. I cut my losses quick and lose most of my trades but I am still profitable though. Because when I do win, it's big. And when I lose, it's small.
Everything you said I knew already, but Ive never heard it so clearly and concisely...will be returning to it to continuously remind me. Hard thing to tame myself...get success and then suddenly break my own rules and fail.
Rigjt on spot! Previously I have been setting my stop loss too tightly only to find out later in the day that the price broke my target.
Hey great video! Very informative, no rambling or fluff! Good audio, good camera angle/screen capture. Good length. Thanks for the video, I subscribed!
Confluence= price action, trend and KEY LEVEL and always look left off the dailies and weeklys
Calm and clear, you're a good tutor David!
Great video. I am glad you mentioned setting your SL wider. I was first taught to set your TP at 3 pip and your SL at 3X your TP, which was 9 pip. I would back test the crap out of my strategy with this information and I would lose much of the time and I couldn't figure out why. Then I decided to back test using a larger TP and SL. What I found astonished me. When I would trade with a TP of 3 pip, I would only win about 55% of the time. Then I changed my TP to 6 pip and my SL to 30 pip and people told me I was crazy. I use the same exact strategy and I win 92% of the time now. I noticed the same thing you did, when the markets moving you need to give your trade time to work. Thanks for the video.
I've just found your channel. OMG you are the easiest to understand, that I have come across. Thankyou!!!!!!!! :)
I tried to pick the bottom of a XUA/USD and lost 90% of my equity - lesson was learned.... when it comes to being a trader it pays to be a sheep.... follow the flock, watch the MACD and literally do as the chart is telling you....
Bullet Sponge Gaming market goes up when i sell and goes down when i buy even though the previous candles show that i should have bigger leighweigh.
OMG! I literally had my stop loss at essentially 0, and was trading £2000+ on one trade, that makes a lot more sense! Thanks :)
Yes because the wicks always take me out
i hope your trading improved at least now mate
This is the best video ever for a novice like me. Thank you so much!
I have to say this is one of the better channels out there that covers this stuff. The explanations are always concise and easy to understand. Great content and I'll be sure to send anyone looking for knowledge this way.
Finally an investing video with a decent mic
love your insights! This is indeed some basic caveats, and yet each of them are potential minefields even for experienced traders
I didn't learn anything new from your video, but I stuck around for all of it anyway. That subtle needle about dwindling attention spans kept me around. I have a feeling we're irritated by many of the same things. :)
Anyway, your videos are quite sound. Always a clean and concise approach.
Good work, David!
Yeah ey
II Kasper: Then, think of this as a refresher video where you certainly would apply this in your trading -- this is when you learn! A better attention span will translate into a better application.
That kept me around too lol
Holy Crap!! I rarely watch youtube trading videos, but when I do they have been uniformly bad -- often to the point of being funny. I would say this is the ONLY youtube trading video I've ever seen that offers truly sensible and useful advice to beginning traders. I'm shocked, actually.
this person has great experience in stock market... keep it up... and thanks for helping other TRADERS..
Hi there. Nice to see you enjoy the videos.
Subbed. Been trading a while and knew all this, but its nice to have a voice to bring your perspective back to reality. Thanks a lot for the video!
Perfect personal and professional analysis I love it, pin points the problem with many many traders
Thank you so much
I wish I had watched your videos before I started. Many thanks for putting them out there.
Excellent video as always. 👍
Thanks, Ade. Stick around for more - fresh tutorials every week.
You threw something in there in less than one sentence that I've wondered for years and never really looked into because I always forget to ask. You said that the oil traded $1.30 or something and then you said that's 130 points. I never realized a point was a cent. That's amazing!!!! I've always heard about the DIA and Nasdaq in reference to points. And the DIA breaching 23,000 points. Now I understand that means it's trading over $230.00 a share!!! Thank you so much. It took less than a second of this clip to explain but it really helps me get my head around this. I wondered if it was percentages or what and now I know. Thank you so much.
isn't one point equal to a dollar? so if a stock increases 5 points it means it went up $5.
A point is a pip and it stays the same. What differs is the profit because of different lot sizes. 5 points can yield $0.50 (micro) or $5 (mini) or $50 (standard)
For stocks, one point equals one dollar. So when you hear that a stock has lost or gained X number of "points," this is the same as saying that the stock has lost or gained X number of dollars.
It is important to note here that we are referring strictly to stocks, nothing else. People often refer to indexes, bond prices or currencies being up or down X number of basis points, and basis points are different. One basis point is equal to 1/100th of a percent, so if someone says the dollar is up 50 basis points, this is like saying it is up 0.5%.
Source: Investopedia
+Tucker Garcia A point is a dollar not a cent! If they were cents there would be no use in commenting on points in markets like Nasdaq and Dow Jones
KEEP THE VIDEOS COMING! i love how easy it is to understand and watch! A++++
Mad Respect Man. You know what your're talking about.
So true. Made all those 3 mistakes in the past. Thanks for a great video!
Honestly who run things channel? Thank you so much for taking the time to put together these videos, no one wants to share knowledge with out cost. Thank you a ton for teaching and giving people the opportunity to be successful👌🙏
Your videos are really helpful. Given me lots of insight. Thanks very much!
this has brought clarity to me , thanks . Increasingly with more knowledge the science is getting clearer
Always giving out clear and make sense videos. Thank You Mr Bond. Aka David Jones.
Great advice regarding stop loss settings. I'm new, not trading actively yet, just taking it all in. Kudos!
love your explanations, they very clear and understandable!
Very helpful, well explained, easy to follow. Thanks
Hello. Your comment is appreciated. You can subscribe to the channel to stay in touch with the next videos - new content every week.
WHAT THEY WON'T TELL YOU!',
7:00 Gold. Dont be afraid to set wide stops and trade a little smaller
Definitely. Gold is very volatile.
Great video and information. Thank you for taking the time to do it.
Excellent, very useful video for all novice traders, respect the author!)
I agree 100%.....I wish I'd watched this 20 years ago when I started. Nice job.
Great Video. Could you make more videos to show the trading mistakes. It's really important to us. Thank you so much
Great video to help with trading psychology. Needed to hear some of this! Thanks for the good content
I like that you get right to it. All of the others that I follow on RUclips will spend up to 5 minutes NOT talking about the title of the video (the subject) that brought you to the channel.
I've done them all!
But how can you tell whether it is going to be a trending day or range bound day. Any thoughts, would greatly appreciated!
Thanks for this invaluable insight, I needed to hear this.
Thank you David
Brilliant, well presented and clear advice, thank you
Thanks for the short video.
My attention span is so small I took a break after 1 min 30 to type this and probably will take another break or two.
Dear David ... Thank-YOU for reminding us again and yes I totally agree on all three . The other problem is that I will pick a bottom or a top . Most of the time I am wrong and the Market goes against me and my call or put is deteriorating. Instead admitting the mistake, I will through more money at it. The trend goes against you and it stock takes to long to turn around and the Warrants with a time decay becomes nothing. I have lost plenty .... Purely on fact that I can not sell, ....... and every day get worse and worse . I do agree that one should spend some time on the product you interested in and get the feel of it. Be careful of noise in the market, wild swings up and down . As Dave was saying, your stop loss is to tight. I hope you all do well, and may God Bless us all with new wisdom and understanding. Janni Roux South Africa.
Love the video mate brilliant, i actually find it hilarious, my smart watch was going off like crazy and my phone, with the notification that the share value was dropping so i could sell, everyone at work thought i was nuts haha people just don't understand, trading it life....its life
Thank you so much for your video sir
Wow. You simplified my issues in 3 simple steps. Thanks man ❤️🙏
Good day David, I must admit I have made all three these mistakes when using my own money...when trading with a virtual account I get it right and risk far less for each given trade...but I am battling with trading psychology when trading with my own money, I deviate from my strategy used when trading virtual and my emotions take over - I have caused myself so much frustration - moving my stoploss farther and farther as a market goes against me "hoping" it would turn which i know is stupid and goes against everything i have learnt about the financial markets and trading as a whole...Guess im just reaching out to you as I am normally a very disciplined individual but cant seem to shake off the emotional part of trading with real money - and i really enjoy trading and technical analysis especially. I have thought about getting a mentor for the psychology behind trading as I would not like to stop trading because of this...anyway, my apologies for ranting on about it, I just needed to reach out to someone who has such broad appreciation, calmness & discipline for trading as you have. Keep up the great videos! I will look through your previous videos for one on trading psychology specifically. kind regards, Hendrik Labuschagne
Do you have your own trading plan that you follow, every step of the trade, from place the position to exiting the position? I found this to be very helpful as i also have rules i need to follow and emotion checks on that plan, so whenever i feel like deviating from the plan i go to my trading plan to see what should be the next step. This does help with a lot of discipline involved.
Well explained sir.Thank you
Hi, Anishad. Delighted to see you like the videos. Stick around for more.
Thank you for the video, what assets do you look into a company to invest long term ?
So guilty of the first one, trying to keep a trade journal on my phone and learning from mistakes. Need to take smaller positions too lol
I love these explanations! You'd be a great teacher!
Great video. This explains all of my mistakes for the last week. Thanks - that was a wake up call I needed.
Hi there. Delighted to see you find the video useful. Subscribe to the channel and never miss a fresh tutorial - new content every week.
Thank you David, I have heard somewhere that the EU gave last week the ECB permission to buy bonds to pull up the EURUSD pair or the Eur pairs a bit higher. Is that true?
Many thanks for those cristal clear advices!
Strong advice that I need every few months. It's rarely about the indicators and the whatnot. They are all using data you see on the screen anyway. It's about managing potential losses and staying alive for as long as possible trying to earn something one trade at a time.
Getting to be the only channel I watch, best lessons hands down!
Thank you for sharing, love it
Thanks David nice and simple.
Thank you. Trading far too big made me make wrong decisions. Thanks for sharing.
I don’t use stop losses on my ETF’s if I’m already down. The reason why is because over time history has shown that the market will always bounce back. Then on high growth risky stocks, I only invest what I would be willing to lose.
Now I do use stop limit/loss if I am up in profit to protect my gains.
Excellent video. have been making these mistakes in my trades. Now got a clear idea.
I didn't know Pierce Brosnan was a day trader! cool.
Thank you for your good advice.
From Japan
I wish I watched your videos couple of years ago before rushing into the trading and loose substantial amount of money. Great videos, Many thanks! Just registered with 212 to start give it another try:)
Thank u ver y mucho.......great explanation.....really useful
Thanks for reaching out, Juan. Nice to see you like the videos. Your support is appreciated.
1. Cut losses quickly
2. Always feel comfortable entering a trade
3. Know your market
Your video explained all my faults via trading, i need to step up my trading game for real, an expert recommendation would be better after all. Thanks so much david
Thanks!
I so agree with you! And you remind me of James Bond (Pierce Brosnan).
That's the most insightful comment I have read on RUclips
He is a big fibber! Good video. lol
Thank you very much for your videos. I am a newbie Forex trader.
I am doing a course online and use your material to better understand what l am learning. It has been an enormous help so far!
Thanks for sharing these three tips. I am new & learning. Last night I lost a trade because I put the stop loss too close. I missed the boat & trade closed in 5 minutes. If I didn’t do that mistake I would make good money. Lesson learned from the trade & your video. Once again thanks.
how can you explain the holding losses thing. I know this for so long now, but just can t apply this basic, I get in messy hedgings after. I need a mentor like you to change my mind set
this took me ages to learn i wish you made this video when i first started would have made me alot more money
FANTASTIC video, very educational, your Intellectual discussions make me ponder the ultimate question. Wen lambo?
Thanks a million$
I don't fully agree with point 1. trend. for example, currently the ftse100 is on a downward trend, however the 'overall' trend is long. a trader 'going with the trend' will say to him/herself, well the trend is short going down so I'll short it. However there is always going to be more uptick given that the 'overall trend' is long going up. This means that a trader will have better trades buying long on the low dips, knowing that price will rise. If s/he shorts instead and ignores the power of the overall trend then sooner or later the price will move up and not come back down, will take out any stop loss even the widest ones. If you have a big margin and trade long buying on the dips then even further big dips will not wipe you out even without a stop loss. okay you'll have to pay the rent on keeping 1 or more trades open but the profits will far outweigh the fees once the overall trend catches up and recovers from the downturn. also while you're waiting you can carry on trading new positions given enough margin. I am doing this and made 12% profit of my trading fund in 7 trading days. I'd be up even more had I used limit settings and been a bit more patient waiting for price to come down more, not buying too early and selling too early. I'm set to double my trading fund 100% before end of year 2018.
Just starting out with all of this so many thanks for the videos, please keep them coming. Would be great if you could do a video on exactly how trailing stops are implemented, I have seen the one already on the site in the video tutorials but I am struggling to understand exactly how they are implemented via the trading platform and how to know what the
difference in points represents in actual pounds to be sure the stop is not triggered too early so that profits are given the opportunity to accumulate if the market does dip slightly.
Hi, Roberto. Delighted to see you enjoy the videos and find them interesting and useful. As usual, your comment will be taken into consideration. When placing a Trailing Stop order with Trading 212, the distance is measured in the currency in which the instrument is quoted. The price displayed when setting up the order represents the price at which the stop order will be executed.
Those are some very good pieces of advice
Simple but priceless
Do you know how to get brokerages like interactive brokers to not margin call you for positions that don’t require any additional margin like naked long options? They cost me more than $45k.
yikes
simple & straight.. love it
it all is so clear and still we all constantly doing them :) since some time ago I am watching this video over and over at least once a month. really. probably your most useful tutorial, which means a lot because whole your channel is probably best I saw so far
I just started watching your channel and really appreciate the advice.
Hey there, thank you for the kind words! We appreciate having you with us and are glad to hear that our tutorials are able to help you become a better trader.
Excellent! Really very informative video for newbie traders. Specially the information about how to correctly place stop losses has been very helpful. I have subscribed to the channel, and please keep up the good work, it is much appreciated. In a future video perhaps I would like to hear your explanation about the recomended amount of leverage to use, and what amount of leverage do you usually use in your own trades, if you use it at all. Thanks!
Hello and thanks for your comment. Your suggestion has been noted. Enjoy your time watching the video tutorials and using Trading 212's mobile and web apps.
As always thanks Rob, you've changed my trading, and by extension, my life.
Who's Rob? :)
David maybe? No?
Trends + M.A is amazing strategy 😊 that i am using