If you’ve ever felt unsure about your trading decisions, it’s time to pay attention…
We all have moments of doubt, especially in the stock market, where uncertainty is an unavoidable part of the game.
Today, I’m gonna break down the secrets to overcoming a few specific challenges that often trip up newbie traders.
From timing your moves just right to finding your unique strategy, and even mastering the art of patience — these are the puzzle pieces that can lead to long-term trading success.
Get ready to learn how avoiding three common mistakes could make all the difference in your trading journey.
Keep reading and I’ll show you…
Mistake #1: Failure to Scale
I’ve said it before, and I’ll say it again — timing is EVERYTHING.
You can be 100% right on a trade thesis, but if you enter the position too early (or too late) … you might as well be 100% WRONG!
Take it from me…
I’m occasionally too early into trades, forcing me to cut the position just before it heads in my direction.
Like earlier this month, when I played it too safe and sold my Nvidia Corporation (NASDAQ: NVDA) 8/11/2023 $445 Puts just before the chart tanked to the low $400s.
So, how can you work towards avoiding mistimed trades?
Scale into your positions gradually.
Instead of buying 30 contracts at once, you should probably be buying 10 or 15 to start, then adding to the position once you get the technical confirmation you’re looking for.
Lowering your initial size helps psychologically as well…
If you risk too much immediately, you’ll be worried about the dollar amounts as opposed to the actual mechanics of the trade.
I’ve fallen victim to this as well. It’s important to find an average position size that you’re comfortable with and not exceed it.
Once you’re strung several small wins together, you can gradually increase your position and scaling sizes.
Mistake #2: Trading Outside of Your Strategy
The first step here is to know and understand your bread-and-butter trading strategy.
For example, my primary strategy is buying puts on blow-off tops and overextended charts.
And sometimes, I need to remind myself of this and stop trying to trade patterns that are outside of my area of expertise.
At one point or another, every trader will find themselves tempted to venture outside of their wheelhouse…
But in my experience, most of the time, this is a mistake.
The Next Trillion Dollar Chipmaker After NVDA (Not AI)
Is this little known chipmaker the next NVDA?
It has nothing to do with AI, but this company’s patented chip could generate NVDA sized gains in the coming months…
Companies like Microsoft, Intel, and Google are all quietly racing to be at the forefront of this new phenomenon…
But unfortunately for them…
This one small company holds the key to this revolution…
On the contrary, there’s nothing wrong with sticking to one setup or strategy and trading it over and over again.
Some of the most successful traders in history have done exactly that.
HINT: If it ain’t broke, don’t fix it!
I think it’s best to zero in on one area of trading and become a master at it.
Whether it’s puts, calls, short, long, big, or small … find the setups that work for you and don’t stray away from them.
Don’t assume that you need to be trading every type of setup under the sun.
Focus on developing a strategy that you can be consistent with. Then stick with it continuously until it stops working.
Mistake #3: Overtrading and Lack of Patience
Lastly, traders would be well-served to remember that ‘slow and steady’ wins the race…
REMEMBER: Patience is the name of the game.
So many traders feel they need to make moves every day, causing them to enter trades they’d be better off avoiding entirely.
Don’t be like these traders. If you fall victim to this mindset, you’re setting yourself up for failure.
Think about it logically…
The more you trade, the more opportunities you have to lose.
But if you narrow your watchlist down to the best setups only, you’ll find they don’t come along every single day.
Furthermore, you’ll prevent yourself from being distracted by mediocre plays.
So, please, stop crowding your mind with trades you don’t have a major conviction in.
Instead, start getting comfortable with sitting on the sidelines until the perfect pattern pops up on your watchlist.
I’ve had to do this myself in the past…
In 2022, I traded much less frequently than normal for the first half of the year. I was patient and disciplined, waiting for my ideal setups.
While many other traders blew up their accounts during a brutal bear market, I avoided devastating losses by, for the most part, not trading.
Then, when the perfect chart pattern emerged in mid-June of last year, I nailed my biggest trade of all time.
The lesson? ‘Slow and steady’ wins the race.
Patience is a trading virtue … nurture it or pay the price.
Now, before I let you go, I have a question to ask…
Are You Ready To Take The Next Step?
I’ll let you in on a little secret … I wouldn’t be a multi-millionaire if I hadn’t joined Tim Sykes’ Trading Challenge so many years ago.
And I want you armed with all of the tools necessary for success in the stock market.
So, if you’re passionate and dedicated, ready to take on anything the market throws at you, then I’ve got something for you…
My mentor, Tim Sykes, has helped traders learn to succeed for years. More than 30 of them (including me) are now millionaires.
Are you ready to take your trading game to the next level? Do you have what it takes to face the Trading Challenge?
Let’s find out…
I’m excited to see you there!