Kunal Desai, Author at Bulls on Wall Street

How to Combat and Conquer FOMO Trading

Kunal Desai — Sat, 22 Jun 2019 14:47:44 +0000

After working with 1000’s of aspiring traders over the past decade, I’ve learned that FOMO trading (fear of missing out) is the leading cause of poor trading and investment decisions. It is such a powerful emotion that causes us to make the worst decisions with our money. In order to make the best decisions with your capital, you have to learn how to deal with FOMO. Every stock trader feels FOMO every day. The best traders have successful strategies to combat FOMO. Before we share these strategies with you, let’s start by talking about why we get FOMO in the first place:

Why Does FOMO Trading Happen?

The primary cause of FOMO is a phenomenon known as hindsight bias. Hindsight bias is a term in psychology used to describe “people’s tendency to overestimate their ability to have predicted an outcome that could not possibly have been predicted.” I’ve found FOMO to be most prevalent in small-cap traders, as small-cap stocks tend to make the biggest percentage moves in a short period of time. “It was so obvious that penny stock would go up 200% today.” “I could have tripled my account today.” “I would’ve bought that dip and sold right near the top.” The right course of action to take is obvious in hindsight. But was it so obvious in the actual moment before that stock made that move? The answer most of the time is no. 9/10 times these penny stocks fade off all day when they are up 50-100%. You will lose all your money you just blindly buy and hold every small-cap stock that is gapping up for a 100%+ move. In trading, you have to make decisions based on probabilities of conditions preceding the setup, not what occurred in hindsight.

Types of FOMO Trading

FOMO will manifest its self in many different ways in your trading. Here are the 3 most common ways it will appear:

Combating FOMO and Chasing Stocks

It is an awful feeling missing out on an opportunity to make money. But it is something that you will feel on a daily basis every single time you look at the stock market. Here is my favorite strategy for combating FOMO in trading:

Turning It Into A Positive

The only thing that matters in trading (and in life) is the present and the future. The stock market will always be there. And there will always be more opportunities. ]]>

The post How to Combat and Conquer FOMO Trading appeared first on Bulls on Wall Street.

Live Trading Workshop: Defeating FOMO & Building Mental Toughness

Kunal Desai — Thu, 20 Jun 2019 18:48:18 +0000

Trading stocks is primarily a mental game. You are your own worst enemy. The stock market is just a mechanism for displaying information. There are thousands of trading strategies that work. But why do so many people fail at this game if there are so many strategies that have an edge? Execution. And successful execution is all down to the mental state of the trader. In order to become a successful trader, you need to develop strong mental toughness to be at peak performance when you trade. You need strong resilience to deal with the plethora of emotions that come from making and losing money. FOMO is one of the most powerful emotions of them all. In order to help you succeed in these crucial areas of your trading, I am hosting a free, live trading workshop on next Monday, June 24th to give you the best strategies I’ve learned from trading for over a decade and working with 1000’s of students.

Removing FOMO

One of the biggest causes of trading mistakes is a concept known as “fear of missing out”. In my 10 years of trading experience, I’ve found it to be the most powerful emotion in trading. And one of the most common causes of trading mistakes. There are so many stocks moving every day, it is inevitable that you will miss out on a potential opportunity to make money. However, many traders cannot control their FOMO, and let it cause them to make reckless trading decisions. Chasing stocks and buying too high, trading subpar setups, oversizing. We will talk more about how to combat and remove FOMO from your trading in our next blog and in our trading workshop.

Building Mental Toughness

There will be so many ups and downs throughout your trading career. There will be many times then you can count where you will want to quit and give up. Most don’t have the resilience to become a successful stock trader. If it was easy, everyone would be a trader, and no one would ever work a 9-5 job. When you are consistently making money trading, you feel like the king of the world and no one can touch you. When you are in drawdown, you feel like a complete failure. In order to become a successful trader, you have to learn how to deal with drawdown and setbacks, and not let these periods have a big impact on your PNL curve. Over the years, I have learned a ton of ways to bounce back from trading drawdown. During the free workshop and blogs over the next couple of days, I will share some of the most effective strategies for dealing with and bouncing back from drawdown.

Sign Up For The Free Trading Workshop Here

]]>

The post Live Trading Workshop: Defeating FOMO & Building Mental Toughness appeared first on Bulls on Wall Street.

45% Off Our Trading Bootcamp (This Weekend Only)

Kunal Desai — Sat, 25 May 2019 23:25:14 +0000

We’ve talked about in the past. You cannot learn to trade stocks from DVD’s alone. For a career as difficult as trading, you need mentorship and on-going support in order to find success. Trading DVD’s are good to develop baseline knowledge, but they fail to offer an interactive environment where you can get all of your questions answered by REAL stock traders. After seeing so many aspiring traders fail to find consistent profitability through DVD’s, we created our 60-day trading bootcamp specifically to take a trader of any experience level from A-Z on stock trading. This Memorial Day Weekend we are offering 45% off our one-of-a-kind trading bootcamp. If you are interested in getting the offer now, click here to get started. Here is a breakdown of the course formatting:

Days 1-30

-Market Fundamentals -Technical Analysis Overview -Charting Setup -Understanding Stock trends -Trading Styles -Risk Management -Trading Psychology -Analyzing Market Indices – Swing Trading Setups (Around 10) – Day Trading Setups (Around 20) – How To Scan For Stocks – Trading Routines (Pre-Market, during, Post-Market)

Days 31-60

-Live Market Recaps These sessions are an opportunity to go over what’s happening in the market and discuss how it relates to the material covered in class. Students will join the instructors immediately following the market close @ 4:05PM EST. These sessions are an opportunity to go over what’s happening in the market and discuss how it relates to the material covered in class. The instructors (Me and Paul Singh) will take you through each trade they took during the market session that day and explain it in more detail. This is when you get to see the material you have learned. -Trading simulator setup & practice -Trading plan creation & review with Bulls Team -Guest Webinars (previous success students)

Chatroom Access

When you finish the course, you will get access to our trading chatroom for 3 months with hundreds of other experienced traders. You will get to watch me, Szaman, and other vetran traders share actionable trade ideas and give live market analysis. Students can call me at any time for trading advice and guidance. That’s something you will not find at any other trading service.

Click here to get 45% of our trading bootcamp.

]]>

The post 45% Off Our Trading Bootcamp (This Weekend Only) appeared first on Bulls on Wall Street.

How to Survive and Thrive During Summer Trading

Kunal Desai — Fri, 24 May 2019 15:32:58 +0000

Summer trading for the stock market can be a dangerous time for traders. It is a period where it is common for opportunities in the stock market tend to dry up. Liquidity significantly diminishes as most of the market participants with big money take vacations. We’ve seen a lot of traders throughout the years struggle with over trading this time of year. The lack of opportunities causes them to over trade, and they bleed out their account from commissions and bad losing streaks. Today we are going to give you some tips to survive and thrive during this upcoming summer. To start, we are going to talk about some strategies you can use to combat overtrading:

Resist Over Trading

Most traders want to make money every trading day. Especially day traders. But you cannot make money if the setups you have an edge on aren’t there. You have to to know when its time to fold and stay on the sidelines. Your odds of winning Texas Hold’em are low with a pocket 2,4. Most traders that overtrade do it because they don’t know the go-to setups that can consistently make them money. As a result, these traders (most retail traders) cannot identify the difference between a high and low probability opportunity in the markets. When you don’t have go-to setups, every stock that moves looks like an opportunity. Here’s a chart I saw on Twitter recently if you’re wondering what over trading looks like:

Summer Trading Choppiness

Another common characteristic of summer trading is choppy trends. It is not uncommon to see range-bound trading during the summer months. You usually can find a few trending names every day, but it is important not to get stuck fighting range bound stocks. Things typically get especially choppy after 10:30 am where liquidity really starts to dry up.

Low Liquidity

With many market participants on vacation throughout the summer, liquidity will often dry up throughout the stock market. This can result in choppy price action, and a lot of failed follow on certain setups. After the market open, the volume can sometimes really dry up in afternoon trading. Make sure not to get stuck in big positions during these periods, and try to size down during the market open when there’s higher volume.

Nail and Bail

I’m a big believer in “nail and bail” during the summer months. Like to get to the beach early and avoid the chop. Often I will just trade the open and then call it a day around 10-10:30. Almost every time I stay after 10:30 during slow summer trading days I regret it. Even if you are red on the day, afternoon trading during the summer is rarely the time to put on new positions to make it back. If there is no opportunity, wait for the next trading day to get it back.

Patience For the Right Opportunities

Since opportunities are often scarce during the summer months it becomes even more essential you capitalize on the opportunities that do appear. In order to be in a position to capitalize on the best opportunities during summer trading, you need to preserve your mental capital. A lot of traders don’t realize the cost of overtrading is more than just your capital. There is also the cost of tying up your attention and energy in a sub-par setup. When you waste your mental capital, you are unable to capitalize on the high probability setups because you were fighting low-quality stocks all day.

Summary

Summer trading is not always like this. Sometimes there are some amazing opportunities during the summer months. But you should also be prepared for things slow down. Come into this summer with these expectations, and you will be able to survive (and hopefully thrive) during the 2019 summer trading sessions.

Free Trading Consultation

If you want direct feedback on how to improve your trading results, click here to schedule a free trading consultation. We will go through all of your goals in detail, and give you actionable feedback on how you can improve.

Get your free trading consultation here.

Download the pdf version of this article here]]>

The post How to Survive and Thrive During Summer Trading appeared first on Bulls on Wall Street.

How to Trade IPOs in 2019

Kunal Desai — Sat, 20 Apr 2019 20:00:05 +0000

We’ve seen a string of well-known companies do an initial public offering in the past couple months. Pintrest, Lyft, Zoom, and Jumia some of the most recent. We have gotten a ton of questions in the past week about how to trade IPOs correctly. In each of these IPO’s there is a common theme and methodology behind trading the initial first few days it goes public. As momentum based day traders, we always want to be in the most explosive stocks but want to refrain from taking on risk and buying parabolic runs or FOMO trades. In this trading lesson video and article, we will go over some tips for how to trade IPOs this year, how to build sentiment around the direction it’s moving, and how to effectively trade it on the days following its public release: https://www.youtube.com/watch?v=xkpwcVzbnLE

Why Trade IPOs?

Patterns and setups tend to work the best on IPO stocks. Why? Because they have so little price history. There are very few levels of resistance or support to stop a stock once it begins a trend. We have seen some IPO stocks like JMIA recently explode to the upside after a breakout. I use IPOscoop.com to keep track of upcoming IPOs, and gauge sentiment around them. However, IPOs can also do the opposite. Once they break a key support level, they can have huge pullbacks. Look at LYFT’s daily chart as a recent example of this. Do not be like most investors and buy a stock just because it is an IPO. Just because it just went public does not mean that it is a good investment. All it means is that the company shares can be purchased on the public markets.

Look At The Float

Given that there is no price history, how do you know how it will trade when it opens? A stock’s float is a strong indicator of how it will be trading. Low float IPOs will tend to be the most explosive, while higher float ones, with over 100 million shares in their float, will tend to be slower moving. Always know a stock’s float before trading it.

Our Favorite Setup for Trading IPOs

It can be risky to buy IPOs the day they open because there is no clear trend formed yet on the daily chart. A stock’s daily chart is usually the way we gauge a stock’s trend, but with IPOs it is different. We have so little price history that we have to go off their intraday trends. A great way to get a low risk, high reward trades on these stocks are to wait for it to pull back to the VWAP once it has formed an obvious intraday trend.

Free Trading Consultation

Get your free trading consultation here.

Download the pdf version of this article here.]]>

The post How to Trade IPOs in 2019 appeared first on Bulls on Wall Street.

The 6 Steps To Become a Successful Trader

Kunal Desai — Wed, 10 Apr 2019 18:38:24 +0000

Everyone wonders how to get started trading and what the path is like to become a successful trader. Unlike most trading services out there, we are not going to sugarcoat it and pretend it’s a quick or easy process. This article will let you know exactly what you have to go through to become a profitable trader. It is a long and tough process, but the reward is completely worth the risk and time you put into it. There are no other professions that have a comparable level of freedom and scalability of income. Anything worthwhile result in life is difficult. Don’t be discouraged by the difficulty of trading. Otherwise, everyone would be a millionaire trader living on the beach right? Why would anyone work a 9-5? Here are the 6 steps needed to become a successful trader:

1. Get Educated

There is a lot of confusing terminology in trading. Candlesticks? Moving Averages? Short selling? Level 2? It sounds like a foreign language. You have to get acquainted with the stock market basics before putting any money on the line. Most new traders are impatient and just want to start trading right away and end up losing all their money cause they have no clue what they’re doing. Trading is no different than other high paying professions. You need education and mentorship in order to find success. You can learn most of the terminology and basics on Youtube and other free resources.

2. Find Your Niche and Trading Style

There are 3 main styles of trading: Day trading, swing trading, and long-term investing (learn more about the differences in the styles here). Which style you pick is dependent on your personality and what suits your lifestyle. Day trading is a good style for those who can process information quickly and make fast decisions. Swing trading is better-suited for those with full-time jobs, and like things at a less stressful, slower pace. You also have to pick a specific niche in the markets. There are a lot of different things you can trade: Stocks, Cryptos, Futures, Forex just to name a few, and there are countless sub-niches within these as well. The narrower and more defined niche you can make your niche and setups, the better. An example of a defined niche is day trading mid and large-cap stocks gapping up on positive earnings reports. Find a niche and style, and learn everything you can about it. A jack-of-all-trades cannot become a successful trader in the beginning.

3. Build A System

This is the part where a lot of traders fall short. They don’t know how to create a profitable, defined trading system. There are 1000’s of profitable trading systems out there. But you have to find one that works for you, and fine tune it for you individually. I could share you my exact trading system, live entries, and exits, and you still wouldn’t be able to make money. A lot of traders have difficulty refining and perfecting a winning system because they don’t track their data. They make assumptions about what works and what doesn’t without data to back it up. They are just trading what they think works, and are just gambling. You need a system that has a positive expectancy, meaning it can make you money in the long run. We show students exactly why their system isn’t working, and tell them exactly what is needed to fix it.

4. Practice in A Simulator

There a lot of mixed views about this step. Some view it as unnecessary as it fails to simulate the emotions that come with trading real money. In our trading boot camp, we put our students on a simulator at the end of the two months of instruction. We only keep them on it for at most 30 days. We have found that a simulator is only beneficial for a short period of time. It has utility: It gives newbies a chance to get the hang of the mechanics of trading, like placing orders, reading your charts, and making decisions on the fly. If you cannot make money with your system on a simulator, why would you ever use real money? As soon as they get the mechanics down and can get a week or two of green on the simulator, we move them to real capital.

5. Trade Live

Finally, you get to the fun part: Trading with real capital. But this is the most difficult step of them all. Becoming profitable trading real capital. Success in the simulator usually has little indication of your ability to make money trading with a real account. This is where we encounter the most problems with traders. They have a sound system and plan, but they cannot execute it correctly. This is where trading psychology comes into play. You have to constantly be improving yourself to achieve peak trading performance that delivers you results. When you start trading live, trade with small size. Ease your way into it. Build up size as you start to find consistency. This is NOT an overnight process. We spend the majority of our time at BOWS working with traders in this stage and help them resolve psychological and mental hurdles which are preventing them from executing correctly.

6. Scale

Once you find consistency, it comes the time to start scaling your success. Many traders shot themselves in the foot because they scale their position sizing too fast. It should be a slow gradual process, not doubling your size every two weeks you are profitable. This is an essential component of increasing your income without hampering the execution of your system. Scaling up too fast will make you trade emotionally, and hurt your performance. Build up your position size slowly, maybe increase 5-10% every couple weeks when you are consistent. Eventually, you will hit barriers where you start to become emotional. When this happens, size down to remove the emotions. We work with our students constantly on picking the right times when to size up, and when to size down.

Free Trading Consultation

Get your free trading consultation here.

]]>

The post The 6 Steps To Become a Successful Trader appeared first on Bulls on Wall Street.

How to Find the Best Stocks For Your Watch List

Kunal Desai — Thu, 28 Mar 2019 19:28:30 +0000

Now that you understand the characteristics of the best stocks to put on your watch list, you need to know how to find these stocks. We typically run very simple scans to find the stocks to put on our watch list. A lot of services out there charge money for their “special scans”. It’s all BS. There are no magic scans that will automatically make you a profitable trader. Scanners and screeners are useful tools, but buying someone else’s scans will not make you money from the stocks you find. We will show you how we run our scans in this article for free:

End of Day Scans

Many of the stocks that you trade the next trading today were “in play” the day before. This is why we always run nightly scans to get a full analysis of all the stocks that made significant moves that day. The type of scans you run will depend on your trading style. A good basic scan to get you started is what we call a “Liquid Gainers/Losers” scan. You don’t even have to use a paid scanner to run this. All you do is filter by average daily volume and percentage gainers/losers. The change should be +/- 4%, and the average daily volume should be over 500k. It is also useful to filter by stock’s float size and relative volume. As we discussed in yesterday’s article, low float stocks on high relative volume are the most explosive. You can do all of this using Finviz’s screener. This will give you a good 50-100 stocks to sift through from the trading day. You want to run these scans at 8 PM when after-hours trading has concluded.

Pre-Market Scans

This is something new traders often miss: You should be running scans twice before the trading day starts. In addition to running scans the night before, you need to do it in pre-market also. Stocks will often have press releases and news come out during pre-market trading. You can use free sites like https://marketchameleon.com/ or thestockmarketwatch.com to see a list of stocks gapping up and down during pre-market trading (you can use them for after-hours scans also). All you have to do is select the pre-market tab on those sites and you will see most (not all) of the stocks gapping up and down during pre-market.

Paid vs Free Scanners

Do you need to pay for a scanner? If you are an active day trader, the answer is definitely yes. Free scanners like Finviz are great, but they have delayed quotes so you will often not find big movers fast enough to get in early in the move before it turns into a chase. Trade ideas is a paid scanner that when configured correctly will alert you to stocks making big moves intraday. If you’re interested in getting our ideas for our Trade-Ideas scans, check out this article here.

Good Scans Do Not Mean You Will Make Money

Many new traders believe that stock scanners are the secret sauce to successful trading. The reality is just one of many different components of a successful trader’s strategy. It is important, but it does not mean you will make money from the stocks that come from your scanner. You actually need to learn how to evaluate and TRADE the stock correctly. Now that you know how to run scans to find the best stocks to trade, you need to know how to narrow down what your scans spit out. You cannot have 50-100 tickers on your watch list. You will likely miss a big mover because you are watching too many names. In tomorrow’s article, we will talk about how to narrow down to make your watch list successful.

Free Live Workshop

We are doing a free webinar on Sunday, March 31st to show you step-by-step how to build your own trading watch list before every trading day. You will get see exactly the process I use to make my trading watch list every day, and get actionable advice about how to build a successful watch list yourself.

Sign up for the free workshop here.

]]>

The post How to Find the Best Stocks For Your Watch List appeared first on Bulls on Wall Street.

Free Webinar: Learn How To Build A Successful Trading Watch List

Kunal Desai — Tue, 26 Mar 2019 20:00:42 +0000

Your watch list is the most important preparation before your trading day. You cannot cut corners when it comes to making a watch list. You cannot become a successful trader without making a watch list. You cannot copy someone’s else’s watch list either. Here’s why: You see trading services everywhere offering paid watch lists. To new traders, this seems like a great deal. But they all soon realize that buying someone else’s trading watch list doesn’t help make them money consistently. Everyone has a different trading style. What someone else puts on their watch list may not be suited to your risk tolerance, capital, or your trading strategy. In order to become a consistently profitable trader, you have to learn how to make your own trading watch list. For this reason, we are doing a free webinar on Sunday, March 31st (sign up here) to show you step-by-step how to build your own trading watch list before every trading day. You will get see exactly the process I use to make my trading watch list every day, and get actionable advice about how to build a successful watch list yourself. Leading up to the webinar, we will be doing a 5-day blog series breaking down the 5 steps to creating a successful trading watch list. Here are the 5 steps that we will cover:

1. Knowing the Characteristics of the Best Stocks to Trade

In order to know what stocks you will put on your watch list, you need to know what makes a stock worth watching. You want stocks that have a high probability of making a big move in a short period of time. We will go over all the characteristics of the best stocks to put on your watch list in tomorrow’s article.

2. Finding the Best Stocks to Trade

Now that you know what makes a stock worth putting on your watch list, you need to know how to find these stocks. We will go through how to use stock scanners and screeners to find the most explosive stocks.

3. Narrow Down Your List

Now that you have run your scans, it is time to narrow down your watch list. This is a crucial step. Having too big of a watch list is not useful to you. There will be too much to watch and you will end up missing the best movers.

4. Make Trading Plans

Know that you’ve narrowed down your watch list to 10-20 names, it’s time to make a trading plan for each stock. This is crucial in order to be able to profit on all the stocks you are watching. There is no point in making a watch list if you don’t make a trading plan to monetize the names on your watch list.

5. Execute

The most important step: Your trade execution. The best watch list in the world won’t make you any money if you don’t buy and sell at the correct times. We will give you actionable tips on how to successfully execute your trading plans from your watch list.

Free Webinar Sunday, March 31st

Join us on Sunday and watch me build my trading watch list live. You will see in more detail how I execute these 5 steps, and get actionable advice on how you can build your own successful watch list.

Sign up for the webinar here.

]]>

The post Free Webinar: Learn How To Build A Successful Trading Watch List appeared first on Bulls on Wall Street.

The Best Free Stock Screener for Momentum Traders

Kunal Desai — Sun, 24 Mar 2019 22:01:45 +0000

If you are serious about becoming a profitable stock trader, you have to be able to find the stocks that fit your trading niche. Many new traders just join a chatroom and follow picks. The truth is you will never consistently profit from following someone else. You will always lose in the long run. You need to have your own stock scanning tools so you can find your own go-to setups.

Why You Need A Screener

Becoming a successful trader means you are self-sufficient. Chatrooms can be great places for idea generation and discussion, but you should never be completely reliant on one for your trading ideas. You have to scan and find stocks that fit your own trading strategy. When I discuss and share my watchlist, they are stocks that fit my style and trading strategy. If you just blindly follow my watch list, you may not understand how to trade them, or miss out on stocks that are more suited to your trading strategy, After working with 1000’s of traders, we realize that most are looking to keep their trading expenses low when it comes to trading tools. And a screener is an essential tool every trader needs. So today we will breakdown and give an overview of my favorite free stock screener: Finviz.

Finviz Features

Finviz.com is one of the best free scanners out there. It is the go-to-scanner for traders who are low budget and are trying to keep their trading expenses to a minimal. Their screener allows you to filter and find stocks by pretty much every fundamental and technical characteristic you can think of. Check out a screenshot of the screener below:

Finviz Screener Filters

Once you run these scans, you can click on individual stocks. Finviz provides a ton of information on the stocks technical and fundamentals. You will see a candlestick daily chart, a variety of fundamental components (float, shares outstanding, market cap, P/E, and so much more), recent analyst activity around it, and links to recent press releases about the stock. See below: I love that you can see a preview of the stock’s daily chart when you hover your cursor of the ticker name. This can give you a quick preview of its technicals, and allow you to quickly rule it out if it’s not one of your go-to setups. You can make a free account and create your own portfolio to track stocks, so you can have a watch list. If you want more tips on how to create a successful watch list, check out this article here. One of the disadvantages of Finviz is if you are a big intraday day trader, the quotes are delayed 15 minutes so you may miss out on some moves. They do have a paid version for about $25 a month that gives you real-time quotes and access to even more features such as backtesting.

Free Trading Consultation

Get your free trading consultation here.

]]>

The post The Best Free Stock Screener for Momentum Traders appeared first on Bulls on Wall Street.

3 Common Trading Mistakes Even Profitable Traders Make

Kunal Desai — Tue, 19 Mar 2019 23:29:27 +0000

Even when you become a profitable trader, some trading mistakes just don’t go away. The difference between a consistently profitable trader and an unprofitable one is not that he doesn’t make mistakes. The profitable trader’s mistakes not only occur less often, and but also result in minimal loss of capital. Even after almost 2 decades of trading, I will still make some of these mistakes almost every month. These types of mistakes almost never completely go away. So it is crucial you learn how to minimize their damage and to take precautions to minimize the probability of them occurring. Here are 3 common trading mistakes even profitable traders make:

Mistiming Setups

Getting in too early. Chasing. Getting out too late and letting a profit turn into breakeven or loss. Every single trader, no matter how proficient, makes these mistakes at least once a month. If you make these mistakes more frequently and they are preventing you from being profitable, it is likely you are trading a system with no edge, or you are trading emotionally. Chasing is one of the most common way traders will mistime their entries. Sometimes FOMO gets the best of us, and we jump in way too high. Getting too early is just as bad. Be patient, and wait for your setup to fully form and trigger. You will never be able to buy the exact bottom or sell the exact top. Do not measure successful timing in trading like that. Instead, strive to take the meat of the move, and accept that you will get the perfect entry or the perfect exit. Focus on being a profitable first and foremost.

Micromanaging Positions

“Should I stay in or should I get out?” How many times do you ask yourself this question once you are in a trade? When you are watching every tick of your positions, it is easy to overanalyze the stock and a think a major trend change has occurred, when it is actually just a normal fluctuation in the stock price. Stocks don’t just move straight up or straight down. Don’t let small market fluctuations scare you out of your positions once your setup has triggered. You can simplify your trading a lot if you just worry about two scenarios once you get in a trade: What happens when the stock hits your target price, or what happens when it hits your stop price. Everything else that happens between these two prices is just noise. Always have a plan going into a trade, and stick to it.

Revenge Trading

Trading after a losing trade is difficult for traders of all experience levels but is especially hard for newer traders. It is tough to remain confident and unemotional after losing money. The natural reaction is to try to make back the money you just lost. What often happens after is that you start to trade emotionally, and you start to put on a string of losing trades. You start taking low-quality setups, and you lose even more money. Revenge trading can turn normal red day into a huge red day where you wipe out weeks or months worth of gains. To prevent revenge trading, setting a daily max loss will help a ton. This will prevent you from spiraling out of control and losing huge sums of money in just one trading day. For more tips on how to prevent revenge trading, check out this article here.

Free Trading Consultation

Get your free trading consultation here.

]]>

The post 3 Common Trading Mistakes Even Profitable Traders Make appeared first on Bulls on Wall Street.