Mistakes Traders Should Avoid At All Costs

How To Win At Stock Trading Tips and Advice.

I'm a winning trader who has crushed the market since 2013, specializing in swing trading. The majority of the time, I am in cash and profit from extremely oversold/overbought trading stocks for quick gains. I have compiled a list of mistakes I see all sorts of traders make. Using this list has helped me become profitable and have over a trading system with over a 95% win rate. Hopefully, you can add it to your trading regimen.

  1. Don't trade stock on the OTC. This is the wild wild west here, most of these companies are entangled in fraud (very little regulation on OTC).
  2. Don't trade foreign stocks, especially Chinese. A lot of fake accounting and government intervention.
  3. Don't trade commodities (oil and gold). They follow geopolitical events that are simply unpredictable.
  4. Don't trade companies that profit from commodities (see 3).
  5. Don't trade forex and futures. Completely different beast, a lot of requires leverage, and is prone to manipulation on light volume.
  6. Don't listen to TV pundits. They know less than you do :-).
  7. Don't trade options. They are very complicated instruments rigged against you like Casinos.
  8. Don't subscribe to real-time subscription trading services. A lot of them are scams.
  9. Don't listen To WallStreetBets (WSB) on Reddit. For every millionaire you see, thousands lose money.
  10. Don't short stocks. The market is designed to always go up due to Fed help. If you do use puts, that way you don't expose yourself to unlimited losses (Imagine Shorting GameStop $GME at $10)
  11. Don't trade healthcare stocks, as congress has a huge say on how these will trade. One new law and the stock you are trading could have their profits wiped out!
  12. Avoid stocks that end with "Holdings", their finances end up being pretty complicated, and reporting is hard to follow. They often have their revenue and assets in a plethora of things. Just stay away.


Also if you are interested to see how well I have done in trading over the last decade head over to breaking down my 95% Win Rate Trading System.

Also, make sure to comment below on what other tips you may think are useful.

Comments

  1. Number 3 & 5, would have saved me lot of money :( thanks for posting this

    ReplyDelete

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