As I have written in “The Little Book of Swing Trading,” it doesn’t take long to learn swing trading. It takes years.
I am not a professional investor, nor have I been through a rigorous program like the StockTwits training. However, as most of you know, the information I am providing is based on over 20+ years of trading experience.
What are the biggest mistakes you see with beginners who struggle with trading?
If you are having major difficulty making it to the bottom and can’t figure it out, it likely means it is the type of trade you cannot make (and most likely, you will never make it to the bottom or make it to an active trading position). Here are the top trade mistakes beginners make:
1. Not looking at the bottom before committing to your position: Most beginners see their position as the bottom.
2. Not following the trading guidelines: This is also a major mistake, and something I do not like to see. Don’t just blindly pick a trade because you think it needs to be done. Follow your own trading guidelines and have a plan for what you are hoping to achieve.
3. Buying low and selling high to cover the spread: When you’re trading in a long position that is expected to last longer than the expected time it will take you to make the money to cover your shorts, you will want to buy and sell as close to the spread as possible to cover.
4. Buying too much too soon: Once you are in a position, you need to let it go out. You need to stop trading and re-evaluate your position. A beginner may do this a number of times, but don’t do another trade until you can get the trade in order again. You want to have a good sense of your position in advance and plan how long you are going to be in it. Also, before you take profit, you want to be sure that you are not overpaying your position with your position, because you want to get it back. If you overpay, you are only taking in more money than you should be. Once you’ve completed the trade, then you can make another one!
5. Trading for a short run at an expected rate: The most common mistake beginners see is buying at the expected rate of return, and selling at the wrong one. This strategy tends to be a huge pain for beginner traders. It takes time and patience, and can lead to bad
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