Just starting out in trading? Do you want to start trading? In this article, we’re going to tell you about the most common mistakes made by beginners who get into the market once they’ve learned a few technical analysis basics via YouTube…
Acting with your emotions without any rational evaluation will destroy your claims by crushing your chances of success!
Capital preservation must take the form of a rational approach based on ratios and each trade taken must be the result of a complete analysis whose parameters, acting as a multi-faceted filter, ensure its effectiveness.
Knowing how to remain conservative is advantageous despite the conditioning to go all out! The intelligent beginner, by a very obvious principle of uncertainty in a destabilizing context due to the lack of experience, must never overestimate his capacities. On the contrary: the beginner must rather risk little and foresee all the possible backlashes well before committing himself to a trade.
Sometimes doing less will ensure your goals. The fact of not putting your portfolio at risk in an unreasonable way ensures its durability by the addition of experience. Beware of the obvious! Because the bad surprise is waiting for you.
Not knowing, nor not wanting to organize like a pro is suicidal
The plan, the objectives, the method and the strategies used according to the markets, the sectors and the trading companies, this is the main concern for all serious active traders: you have to collect everything in order to get something out of it in terms of experience! Without collecting all this data, trading would become an empty and perilous exercise.
Not doing it methodically is like jumping out of a plane without a parachute. Not learning from our own trades, won and lost, is a latent proof of incompetence and disorganization.
Self-reference and self-prophecy, handcuffs of enlightened learning
Not being able to or knowing how to overcome your own contradictions, remaining fixed on your own convictions without ever seeing any solution to overcome them when your vision becomes the first victim of the filtering glasses you wear, undermines and minimizes the chances of your success. Never questioning anything (including ourselves) beyond a necessary breakdown of the ideas and principles we subscribe to, is a real danger, which imprisons the active trader. Although one should never be a weathervane, especially when difficulties hit and make us vulnerable, too much rigidity in the end risks cracking the foundations of an edifice that is a priori perfectly constructed.
The observation is therefore the following: we must work methodically to allow our approach to renew itself without losing its foundations. But how to do this? It is precisely the role of counterweight played by the group in our progress. But the group in question must be competent and trained in the rules of the art.
Whether I think something according to a personal theme, whether I want this or that result according to this or that conviction, whether I adopt a rational approach rather than another, it makes sense in the context where, as a trader, I have to constantly choose and discriminate between the subtle and the thick. Now, I must also not lock myself in an ivory tower and choke on my own arrogance: because all systems are dynamic by definition. And so is the market! This implies knowing and being able to overcome the limits of our knowledge in order to ensure the best without the worst.
Fannie Mae, Freddie Mac and the drama of the pack
Living in an economic system as complex as ours does not mean that we understand everything that is going on: the 2008 crisis is a good example.
From the point of view of the man in the street, it is the growing skepticism, aversion and reluctance towards the institutions that govern us and that give rhythm to our lives with a logic of disarray. Dissatisfaction with the elites who act in our name amplifies this feeling of dispossession. Ultimately, people do not understand what is going on above their heads and yet impacts their lives. This results in a frustration that calls for a solution. It is therefore a shock program to cross-reference and decontextualize the current market situation and its effects on prices as well as on society itself, that we propose.
Because to stop being in the camp of the blind is an essential leap for those who wish to break their handcuffs and free themselves from the financial rigors of the worker and so many of our peers. Think differently with competence. Become the leader of your life and no longer an invisible link in the pack.
Dare! Act in your own interest. Don’t believe what you are told. Investigate beyond appearances now. Become one of us!
Never start somewhere.
It is so easy to make excuses and put off what should be done today. Of course, taking action is destabilizing and comes with its own set of risks. But without the perspective that comes from taking and overcoming risk, no opportunity would ever arise. There is an entropy to the important actions that will make a difference. It is therefore imperative to break free of our chains and push our own limits. Do you believe you have the stuff to stand up despite your unstable situation and legitimate fears?
If you believe in your chances to succeed, you must be intelligent in your choices: choosing your allies and the tools of your financial success is the ultimate value of a rational personal development strategy.