“Don’t ever let them get into your pocket.” – Paul Tudor Jones
Here are the errors we make that cause the market to take our money:
- Traders miss a trade setup, then take it late in the move. Chasing a trade is rarely a good decision. Buy right or sit tight.
- Traders buy a dip before it really reaches a good risk/reward setup.
- Traders buy a dip before there is any sign of a reversal.
- Traders wait for the perfect moment and end up with no setups.
- Traders hold onto opinions after price action has proven them wrong.
- Traders are stopped out of ordinary price action because their stop losses are too close, and their trades aren’t given enough room to breathe.
- Traders perpetually short uptrends and buy downtrends, missing the easy money and creating losses.
- Those that spend more time trading than studying will have their money taken by traders devoted to learning.
- Caring more about personal opinions than price action is the best way to donate money to the market.
- Holding onto a losing trade because you don’t want to take the initial loss, is a great way to turn a small loss into a big one.