Traders look forward to a new year as a “fresh start”–hoping for better trades, better markets, better discipline. However, many novice traders charge full throttle into the markets with high profit expectations. These traders find out rather quickly that making money consistently isn’t as easy as they expected. For some, this realization can be quite discouraging. The prospects of making money often lure people into the trading arena, but the reality of losing money can be a quick deterrent. In truth, most professional traders make many trading mistakes. The key to their eventual success, however, is that the professionals STUDY their mistakes and learn how to minimize them going forward.These common mistakes have been narrowed down to the following:
1.Little preparation - Not studying the market one is trading
2.Being too emotional about money - Not able to risk the amount needed
3.Lack of record keeping - Not writing down the reason/strategy for the trade
4.Anticipating profits - Hanging onto a trade until it makes a pre-determined amount of money
5.Blindly following mechanical systems - Removing the human element of logic and reason from a program
6.Knowing how to go LONG and SHORT a given market - Not being married to trading in one direction only
7.Lack of trading diversification - putting all your eggs in one basket
8.Improper timing - Not locking in a profit or taking a loss when necessary
9.Improper stops - Stops ON support or resistance with the “crowd”OR NO STOP!
10.Not calculating a risk/reward - Not having a logical plan
If any of these points describe your trading style, I would be happy to work with you to correct them!
Series 3 Licensed
Senior Market Strategist
Susan attended the University of Wisconsin Integrated Liberal Arts Program where she received her BA/BE degrees in 1966. After graduating, Susan taught elementary school. In 1980, after watching a family member trade in the pits of the Chicago Mercantile Exchange, she began training with Ira Epstein and G.H. Miller. She passed her Series 3 exam and enrolled in a multitude of technical analysis courses, including: charting, fundamental theory, Gann theory, Market Profile, and seasonal patterns. In 1981, she moved to Rouse Woodstock, which became American Futures, where she helped train brokers to raise equity. In 1982 she formed a trading group and then moved to Refco. In 1994, she joined Jack Carl/Index Futures to pursue the retail hotline business and expand her trading group. In 2011, Susan joined RJO Futures.