1. TRADING THE WRONG STOCKS Prioritize stocks with substantial volume. For lower-priced stocks, target those trading a million shares daily. Also, consider past runners, as history often repeats in the market.
2. HAVING NO PLAN Understand why you're buying a stock, set specific criteria, and align multiple indicators in your favor. Preparation is key; randomness burns accounts.
3. LETTING LOSSES RUN Follow through with your planned stop-loss levels or have pre-mental stop loss to exit trade. Deviating from your predefined exit points can lead to significant losses. Maintaining discipline is key. Always have a trading plan and commit to it.
4. OVERTRADING When facing a losing day, avoid the temptation to overcompensate. Overtrading worsens the situation and makes recovery harder. Remember, digging a deeper hole can be tough to escape.
5. NOT HAVING THE RIGHT TOOLS Quality tools matter! Free or cheap options can lead to delayed news and incomplete data. Invest in valuable resources that will enhances your chances of success.
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