Alexander Gerchik
0
All posts from Alexander Gerchik
Alexander Gerchik in Alexander,

The most common mistake traders make

1.  Traders don’t place a stop loss

If YOU (yes it is you) don’t put a stop loss, you should know that your deposit is desperately ill and will die soon.

I often hear traders talking that they will be able to stop loss as soon as they see that position is in the red or that it is a temporary drawdown and everything will recover, or they have the strategy and everything is under control. It is bullshit. If you are lucky and you are on the upside now, the market will punish you sooner or later, it will give the taws to anybody.

2.  Traders enter a losing position.

Unfortunately, over half of traders suffer from such kind of dementia. And if it is coupled with absence of a stop loss, then it is real cretinism. It is the reason to shift the deposit in no time. A trader can earn a little bit for some time, and then bang - the position went against him. But he doesn’t want to admit a small loss and enter this losing position again in the hope that the price will go in the right direction and he will make twice more money because now the average price is much better. But the price goes in other direction, the market doesn’t care what another “great” strategist invented. So, the brain is out of work and now it is time for Hope that the market will go in the right direction.

To recall, the market owes nothing to no one. But the trader triggers a backflash and enters the same losing position AGAIIN. And again and again, until his brain stops working completely and the deposit is close to zero. There is a very small chance to get off with a whole skin. More often such traders face complete failure sooner or later.

If you recognize yourself, immediately take measures. Place stop loss orders and don’t enter losing positions. Otherwise, you are another dead body on the market. Cemetery of deposits is growing every day.