Bad Habits of Unprofitable Traders

Steve Burns posted a nice list of rules for traders. It is a worthy addition to our prior lists of rules (most recently, here; all previous rules here)

 

10 Bad Habits of Unprofitable Traders

1. They trade too much.

2. Unprofitable traders tend to be trend fighters, always wanting to try to call tops and bottoms.

3. Taking small profits quickly and letting losing trades run in the hopes of a bounce back, is a sure path to failure.

4. Wanting to be right more than wanting to make money will be a very expensive lesson.

5. The biggest key to profitability is to avoid big losses. (sizing / risk vs reward)

6. Unprofitable traders watch CNBC for trading ideas.

7. Unprofitable traders want stock picks, while profitable traders want to develop trading plans and systems.

8. Unprofitable traders think trading is about being right.

9.  Unprofitable traders don’t do their homework because they think there is a quick and easy route to trading success.

10. Unprofitable traders #1 question is how much they can make if they are right, while the profitable traders #1 concern is how much they can lose if wrong.

 

Good list for newbie traders . . .

 

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