Contents
- 10 habits to avoid if you want to win on the stock market
- 1/ Excessive use of leverage
- 2/ Avoid overtrading to win in the stock market
- 3/ Wanting to remake yourself
- 4/ Not looking for mistakes
- 5/ Follow trading signals to win in the stock market
- 6/ Trading forums for winning in the stock market
- 7/ Media gossip and the like
- 8/ Change your method every 2 days
- 9/ Psychology, the key to winning in the stock market
- 10/ Lack of training
Together, we’re going to look at 10 habits to avoid if you want to win in the stock market. These habits are generally found among beginner traders, but also among traders who have been trading for several years, but who are not winning in the stock market. If you want to win in the stock market, you need to work on yourself, and no one else can do it for you.
10 habits to avoid if you want to win on the stock market
1/ Excessive use of leverage
Before deciding whether or not to use leverage, you need to have a trading plan that matches your money management. The higher the % loss risk you take in relation to your capital, the more you’ll be psychologically affected, and so the classic pattern of self-destruction begins. I’m not of the same opinion as those who say you shouldn’t use leverage, because for example I have a trading algorithm that scalps the dax, the stop loss is according to volatility, it generally runs at 5 points for a profit of 15 points, with a stop loss of 5 points, in scalping you need leverage or you’ll have a poor performance. On the other hand, when swing trading on a daily chart, I’m against using leverage.
2/ Avoid overtrading to win in the stock market
I’ve already written an article on this subject: “How to combat overtrading“. It’s a truly self-destructive psychological point that can burn up your trading account in record time.
3/ Wanting to remake yourself
This is an expression used by casino gamblers: since we don’t play at the casino, forget about it, so we can win in the stock market! After a loss, you want to make up for it to end the day with a gain, which leads to overtrading or not, because you can end your trading day by “accepting” your loss, except that the next day you trade with the idea of making up for yesterday’s loss, which is a very bad state of mind for a trader with good psychology.
4/ Not looking for mistakes
Since I’m good, it’s the market’s fault, no no, it’s the broker’s fault. He set up a strategy to prevent me from earning €2 every 6 months, so that he wouldn’t go bankrupt. Oh no, in fact it’s the method’s fault, well yes, I’ve just changed the asset class and the recommended time unit, and also a few indicators because mine are better. If you recognize yourself in this, it’s normal that you’re not winning in the stock market. You also need to analyze your trades, whether they’re winning or losing.
5/ Follow trading signals to win in the stock market
The problem with trading signals is that performance tracking is calculated in points, with no track-record issued by the broker. It’s a big scam when it’s calculated in points. What’s more, it makes you too dependent on the service provider, so you’ll be hooked on your phone for fear of missing a signal, and really impatient when a trade is opened. Not everyone is cut out for trading, so instead of following trading signals, it would be more beneficial to turn to algorithmic trading.
6/ Trading forums for winning in the stock market
Lol, you won’t find the miracle system among people who are looking for it and won’t find it. It’s ideal for changing your trading method and style every 2 days, so you’re sure not to make any progress. Not to mention the bogus opinions of people who can’t manage to win in the stock market, which is their way of venting their frustration and getting sympathy from the same people.
7/ Media gossip and the like
Follow your own analysis without listening to what’s being said or said on the left and right. The media are far too far behind the market. Does this person or source know more than you? Certainly not! An analyst is not a trader, so anything you subscribe to in the financial newsletters is good for the garbage can.
8/ Change your method every 2 days
As in many fields, and even more so in trading, perseverance is the key. Stop changing your trading method as soon as you make a loss. Every trade is different and has its own context, and it’s by dint of trading that you become a trader 😉 . You need to use a trading method that suits your personality and persevere until you get the results you want.
9/ Psychology, the key to winning in the stock market
If you want to win in the stock market, you absolutely must approach the financial markets with the right psychology. It’s a vast subject, and it’s this psychology that’s going to make you fall into the points previously discussed in this article.
10/ Lack of training
In life, anything is possible, and succeeding in winning in the stock market on your own is possible, but it’s a very long road. And rather than spending several years for nothing, how much of your capital will you lose? You might as well use it to train yourself and become profitable more quickly and more serenely; or use a trading algorithm as for those who don’t have the time or don’t want to trade.
The conclusion of these 10 habits to avoid if you want to win in the stock market
In the hope that these 10 habits to avoid in order to win on the stock market will be useful to you, one thing’s for sure: they are, but you need to apply them and therefore have the right psychology 😉 . Keep your money management rigorous and your risk low, so as not to be emotionally affected.
Tell me in the comments what bad habits prevent you from winning in the stock market.
Joseph Pergnan
