These are lessons I have learnt in my years as a trader, do pay attention to them it would save your trading capital, make you profitable and save you from unnecessary heart break.
CUT YOUR LOSES EARLY
Maybe you have heard the saying ‘’you only lost when you sell’’ or ‘JUST HODL’??? As a new trader, I listen to them and this gave me heart breaking lessons.
I held unto my loses for quite a while, this tied my trading capital down, I realised losses in capital and it was frustrating until I learnt from my mistakes. Hoping is not a trading strategy.
Cutting your losses is admitting that you were wrong, it is a risk management strategy you have to learn, it took me years to realise this. I am sharing this lesson with you because I really want to see you succeed.
Loses are part of the game of trading, minimising loses early is a good strategy every consistently profitable traders uses.
HOLD UNTO YOUR WIN
Don’t take your winning trade early, allow them to run, this can compensate for possible little loses, to be a profitable trader your winning trades has to be profitable enough.
Avoid this mistakes and let your bullish phase complete before exiting your trade.
DON’T BE A FAN BOY
It is okay to support a project but be willing to cut any portfolio that does not meet your trading goals or strategy without sentiments.
You may probably think this is easy but I see a lot of intermediate traders making this old mistakes.
Habits form our character avoid this trading mistake, if you are already making these mistakes learn from them now and grow.