10 Most Foolish Things a Trader Can Do

Happy April Fools Day.  Hopefully you got through it without being pranked.

I have my own version of this “10 Foolish Things” concept in my head but I’m not quite ready to flesh it out yet.  But here’s a great iteration from a site called New Trader U…

I came across this post by Stephen Burns and he’s allowed me to repost it here, check it out!

The Ten Most Foolish Things a Trader Can Do

1. Try to predict the future movement of a stock, and stay in it no matter what.
2. Risk your entire account on one trade with no stop loss plan.
3. Have a winning trade but no exit strategy to get out, no trailing stop or exhaustion top signal.
4. Ask for and follow the advice of others instead of trading with your own trading plan, method, rules, and system.
5. Trade your emotions instead of signals: buy when you are greedy and sell when you are afraid.
6. Trade your opinions, not a quantified method.
7. Do not bother to do your homework on trading, just jump in and trade, you are smart, you will figure it out.
8. Short the best and most expensive stocks in the stock market and buy the cheapest junk stocks.
9. Put on trades you are 100% sure are winners so you do not even need a stop loss or risk management.
10. Buy more of a trade that you are losing money in and sell your winners quickly to lock in small profits.

Thanks Stephen, good list!

Visit New Trader U here