The Five Most Common Trading Mistakes Made by Almost All New Day Traders
Not using Trading Stops : Using proper trading stops is the key to success in trading.
Trading stops go hand in hand with managing risk and capital preservation.
A trading stop helps the trader get out of a losing position without thinking too much.
It is a part of most execution platforms today. A trading stop tells a trader that their analysis of the market move was wrong.
A trading stop can be based on the amount of money a trader is willing to pay the market to find out if he or she is right about their analysis.
Having stops placed automatically helps build confidence in a trader as they know they will not have to think too much when the market moves against them by a certain amount.
They know they will get taken out of the position automatically when the stop is triggered.
After all, the first loss is usually the smallest loss.
