The 5 Biggest Mistakes New Traders Make

The 5 Biggest Mistakes New Traders Make

Intro: 0:00
Trading Strategy Recap: 0:13
Trading The Wrong Stock Or Option: 1:45
Entering A Trade Too Early: 2:30
Entering A Trade Too Late: 3:54
Taking Profits Too Early: 5:11
Not Getting Out Of Losing Trades: 5:47

Let’s talk about the top 5 biggest trading mistakes that are TOTALLY preventable.

As we work through this list, I’m saving the best for last. And by best, I mean WORST!

This mistake is SO big, I actually refer to it as the “Account Killer”.

But, before we get in too deep...

Let’s have a recap.

What’s the importance of having a proper trading strategy? It’s typically one of the BIGGEST differences between profitable and non-profitable traders.

Sounds pretty important to me...

SO, what does a proper trading strategy consist of?

There are 3 parts to a bulletproof trading strategy:

1.)What to trade - What stock or option should you purchase?
2.)When to enter- What strike price to buy the asset at?
3.)When to exit - When to exit? With a profit or a loss?

=============================================================================================
================================================================================
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with Rockwell Trading Services, LLC whereby tastyworks pays compensation to Rockwell Trading Services, LLC to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Rockwell Trading Services, LLC by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Rockwell Trading Services, LLC or this website. tastyworks does not warrant the accuracy or content of the products or services offered by Rockwell Trading Services, LLC or this website. Rockwell Trading Services, LLC is independent and is not an affiliate of tastyworks.

[rockwelltradingservices]

Which mistakes have you made (or continue to make 😜)? Let me know in the comments how I can help!

[danielcsanadi]

You mentioned earlier, that one should have only 5 active trades. Should one divide the capital evenly? Eg. 5x10%?

[sarmavedula]

Sir, Nice advice with excellent explanation.

[SpectreOfWallSt]

ALWAYS with the amazing advice. Thanks again Markus!

[gengen]

hello sir markus how to get your book ? Im interesting your power x strategy .

[stevenm.]

HI Markus, I had instance just in the last few days where I was up $700 on a stock (holding 1000 shares). I was a little over 4x my risk at that time. Because I didn't take the profit, now the stock pulled back and I am now only now barely over 1x my risk. What should I have done in this situation to build consistency? Should I have sold 500 shares when I reached 2x my risk (target) and cut my stop loss in 1/2 as well? and then when it reached 3x (which is an overarching goal) to sell the remaining 500 shares to close the position out (though that may counter your trading mistake #2 of taking profits too early)? Could you share the rules that you follow so I can build consistency and stop seeing gains being left behind? Thank you!

[miiiiikeee]

I don't see taking profits too early as a mistake especially for new traders. A win is a win. I make money in the stock market by selling early and I do it consistently. I don't think I made a mistake anywhere.

[larosa]

Can you do a video on options you trade for the wheel about how you enter based on delta or downside percentage? For example, if a stock is at 100 would you sell the put based on 5% downside at 95 or a 30 delta at 93. All arbitrary numbers obviously. Thanks, Markus I’m really enjoying your videos.

[GetRichtogeather]

i dont know how to read charts or option trading

[nikhileshmartin]

Entering too early . Timing is everything !

[tatakainokaizen]

i have definitely made all of these! hehe, but i'm slowly learning not to make the same mistakes twice.

[AnaJ.]

Yes, entering late: usually on etfs like JNUG and DRIP/GUSH...😫 and actually yes to all...

[lilthletterking]

Yea I lost a bunch of money hanging on to stocks thinking they would come back...use those stop losses

[ajaydeee]

Take profits to early, especially if it covers loses