Here are the 3 worst trading mistakes to avoid:
1. Don’t let a trade become an investment.
If you have a short-term trade for quick profits as a specific goal then do not hold the stock for much longer than planned. Once you realize you are wrong, get out quickly. A trailing stop can help, allowing to participate in further upside but getting out of the trade after a decline.
2. Don’t take on more risk than you can handle.
Do not take on a too large position in a specific stock. No investment should cause you so much stress that you lose sleep.
3. If you’re married, make decisions together.
Both don’t have to be stock pickers, but important things should be discussed. One partner should not be uncomfortable with an investment decision. Financial issues cause a lot of stress in marriages, especially if one partner thinks they are taking too much risk. Understanding what each partner is comfortable with will take away some of the stress.
Final tip: Learn from your mistakes made. Like every investor before, you will make mistakes. Losses tuition fees for valuable lessons. But do not let tuition fees become too expensive.
Sven Franssen