New Year's Trading Resolutions

December 29, 2016 5:06AM CST

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!

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.