Biggest trading mistakes' webpage is about the seven biggest trading mistakes
that Forex, stock, commodities, futures, options traders and investors must
avoid to profit in the financial market and limit losses.
Image = A professional trader is in front of
trading screens taking a phone call. This picture
illustrates traders' agony after a gross trading mistake.
The First Biggest Trading Mistakes:
Breach Of Market Patterns
The number one biggest trading mistake is to buy in a declining market
or sell in a rising channel. In each case, one is violating the market patterns.
The trend is your ally so are the channels. If one wants to sell because the
long-term trend is bearish, one ought to wait for the medium term trend to
develop into bearish before one can look forward to a bearish signal.
Moreover, one will only sell after the signal when the short-term trend also
turns bearish. The reverse is also true if one is bullish.
Now watch the seven biggest trading mistakes playlist at the bottom of this page
to learn more.
The second Biggest Trading Mistake:
Devaluation Of Support And Resistance Levels
The second biggest trading mistake is to buy in a resistance region or sell on
top of a key support level. Quite often, a bullish signal occurs in resistance
area but the risk-reward ratio is deplorable. Therefore, one ought to skip it
or wait for a well-founded breakout before considering it. On the other hand,
one is better off waiting for a sound breakdown if a bearish signal takes place
beneath a key support level. The devaluation of key support or resistance
levels invalidates trading signals.
Now watch the seven biggest trading mistakes playlist at the bottom of this page
to learn more.
The Third Biggest Trading Mistake:
Top-Down Trading Or Multiple Times Frame Trading
The third biggest and forbidden trading mistake is to trade on a solitary period.
For example, one identifies a double bottom chart pattern on the daily chart and
uses it as trading setup, signal and entry at the same time without referring to
other periods.
In most cases, the double bottom chart pattern would fail if
the resultant medium or the long-term trend is bearish.
In actual fact, the top down trading allows day or swing
traders to
1/ authenticate the trade setup
2/ filter out false trading signals
3/ to quantify and curtail the risks
4/ and to time the trade precisely.
See the video
Title: What Is A Multiple Time Frames Trading Method
Description: A multiple-time-frames trading method is a method that applies at
least two time frames or preferably three to analyse financial instruments such
as stocks, indices, futures, commodities and currency pairs in view to time
the trade at the right time and place.
Generally, the first time frame is for the trading setup, second time for the
trading signal and third for the low risk entry point.
Note that the key to a successful top-down trading method is the validation of
the trading setup on a higher time frame.
This trading tutorial gives practical examples of various mulitiple-time-frames
trading methods that are useful to both day and swing traders. It also explains
and demonstrates what is a multiple-time-frames trading method.
Watch in full, rate and share this unique trading video today.
Now watch the seven biggest trading mistakes playlist at the bottom of this page
to learn more.
The Fourth Biggest Trading Mistake:
Market Environment
A day or swing trade may fall short exclusively due to the prevailing market
environment.
In this instance, though one has thoroughly
abide by every other trading protocol,
one is trading during unfavorable hours
when sharp market participants stay way.
In fact most day traders who trade during the gap periods often lose since the
market atmosphere is out of place.
Similarly, swing traders who lay their buy or sell orders on Mondays are regularly
taken out their trades before the price recommence
their expected move.
Furthermore, bullish investors who buy stocks in January customarily profit less
than those who buy around mid-February.
Now watch the seven biggest trading mistakes playlist at the bottom of this page
to learn more.
The Fifth Biggest Trading Mistake:
Misuse Of Technical Indicators
The fifth biggest trading mistake is the mishandling of a technical indicator.
If one is a technical trader, one ought to master technical indicators
such as MACD, slow stochastic, moving averages, Bollinger Bands, Commodity
Channel Index and the Relative Strength Index oscillator.
In fact more than fifty per cent of traders
are not competent in technical analysis.
It is alarming for the reason that one is using trading tools that one does not grasp.
The largely misused momentum oscillator is the slow stochastic. In an uptrend,
most traders time and again sell securities just because the stochastic is overbought.
Conversely, in a downtrend, several day and swing traders also buy financial instruments
instead of focusing on bearish signals because the stochastic oscillator is oversold.
Now watch the seven biggest trading mistakes playlist at the bottom of this page
to learn more.
The Sixth Biggest Trading Mistake:
Economic News And Fundamentals
For most beginner traders, it may take a long time before they appreciate the significance of the economic news.
Additionally, few may wipe out their trading account before they take note.
Nevertheless, those who grasp
how to use the trading triangle commonly
put a stop to their rollercoaster trading
way of life, and start to pick up at a faster pace.
To those who trade currencies (Forex market), it would be better to pause
trading if one does not want to merge
technical analysis with the economic news.
Once traders start paying attention to the economic news, their trading begin
to improve. One should always stay away from this trading mistake.
Now watch the seven biggest trading mistakes playlist at the bottom of this page
to learn more.
The Seventh Biggest Trading Mistake:
Multi-Talented Trading Mindset
Note that a trader may adhere to the top down trading method, but
will forget to utilize the market patterns. Equally, another trader may align
his or her trading strategies with the markets, but will take no notice of the
market environment. A day or swing trader may employ all technical analysis,
but may ignore other market stable data or principles. A multi-talented trading
is about applying a specific market principle or strategy without violating other core
market or trading rules.
Now watch the seven biggest trading mistakes playlist at the bottom of this page
to learn more.
Description: Easily improve your day, swing, position trading and investing by
bypassing the seven biggest trading mistakes. This tutorial explains these
trading mistakes and their implications. It also allows market participants to
understand their weakest trading spots. Now, it is possible to start improving
trading and investing strategies. Get started.
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