Trading Coach Advice – Fix Your Mistakes Easily
Tuesday, June 22nd, 2010Of course when you begin any new activity you are going to make mistakes. It is no different with learning to trade. Inexperienced traders will make a lot of mistakes as they learn about the game of trading. The best way to approach the task of learning to trade is to understand that it is natural to make mistakes and be ready to fix those as you recognise them in yourself.
I recently interviewed a number of trading coaches and mentors and asked them what are the common mistakes they see when coaching new traders. These professional traders also spend time coaching private clients, so they regularly see traders progress from novices to making money out of the markets. It is only those that continue learning and improving their performance that get to the point of making money.
Lets go through the most common mistakes that the trading coach and mentors find. One of the most frequently made mistakes that a trading coach sees is that the new trader doesn’t have a very good trading plan, or if they do have it, it isn’t finished. A trading plan is your game plan and tells you what you should do in different situations. It saves you from trying to work out the best course of action when you are under pressure.
Many new traders are impatient. When you start trading you cannot wait to start and trade. It is easy to try to find a trade and take one even if you really should not have. Instead of waiting for the best opportunity, they will take the trade that almost fits the setup that have been waiting for. One of the lessons to learn is that you must have patience and wait for the setups.
Stops are also a common problem. Many people will set the stop too close to the price that they bought. It is the fear that gets them. They are worried about losing their money, and to guard themselves they set the stop too tight. The lesson to learn with stops is that trades take time to develop, and it’s essential to allow them room and time before deciding that you will take a loss.. A trading coach can be a great way to speed up your learning of how to trade.