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. AudaciousJanuary 2, 2021 at 7:26 PM

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

    ReplyDelete

Post a Comment

Popular posts from this blog

The EMA Cloud: The Next Generation Of Indicators?

Image
As I have talked about countless times on here, having an edge in the market is directly correlated to having something unique that is not public, that no one else uses. It's always about thinking outside the box and doing things just different enough that give you that trading edge over everyone else. In this article, we are going to discuss how a trader just did that, thinking outside the box, made things a bit different than they were before, and was able to use this new strategy to become profitable. EMA Clouds is one of the newest and most effective indicators out there, which was recently developed and pioneered by Ripster, the founder of Atlas Trading and Bio & Tech trading platforms. The EMA Cloud System takes two desired EMAs. The area in between is shaded to visually represent the trend direction and determines the support and resistance levels. Take a look at the EMA Cloud Chart above using a real-life example of $SPY. Notice how the 20 EMA is above the 50 EMA, thi
Read more

How To Tell If A Stock Has Bottomed Out

Image
Trading stocks in a bearish environment can be daunting, especially for new traders. It feels like your stock can continue to bleed with no end in sight. I know it can cause quite a bit of stress. However, pullbacks on fundamentally sound companies are usually a golden buying opportunity. What I mean by "fundamentally sound" is no red flags in the company: it's not a meme stock, it has insane growth, it doesn't have much controversy surrounding it. If you can find the exact reversal that occurs in these types of stocks, you can really make an insane amount of money, as they tend to bounce back really hard as shown in the real-life examples below. In this article, I will show you how to perfectly identify one bottom reversal pattern that can end up helping you make a ton of money. How To Tell A Stock Has Bottomed Countless times in this blog I have mentioned you need a "cluster of indicators" to buy and sell. This means you need more than one indicator tellin
Read more

Elder Impulse: The Perfect Trading System?

Image
When beginning to trade, it is advisable to look up what tools professional traders have in their arsenal. The Elder impulse system designed by Alexander Elder and featured in his book “ Come into My Trading Room ”, is one of the best tools that people new to trading can employ right away. The trading system is easy to follow, and a great starting point to get into trading profitably.  This trading system combines two indicators; a 13-day exponential moving average and the MACD- Histogram. The trend of the price movement is identified by the 13-day exponential moving average while the momentum is measured by the MACD-Histogram. When these two indicators are used together a trader can easily identify tradable impulses (buy and sell entries). How to use this indicator in trading The ease of use in this trading system comes from the indicator using color-coded price bars, as shown in the chart above ( please study it as it’s pretty self-explanatory). A green price bar will be indicated wh
Read more