The Top 4 Mistakes New Traders Consistently Make

It is widely believed that between 8 and 9 out of every 10 traders fail to make any profits from their efforts. With such numbers working against those who believe that they stand a chance in the field of trading, there has to be a comprehensive level of commitment and preparation in order to persist. After all, if you don’t know what to expect, how you will be able to adequately gauge your progression? While you may find luck is on your side, this will seldom last.

In order to try your hand as a trader with a decent level of capital, it is crucial to understand what you are getting yourself into. Take the time to read as much about trading and what you are likely to invest in. Digest as much information as you can from the top financial blogs on personal finance and ensure that you are in a position to trade. If you have established that this is the still the route you are willing to pursue, then implement a strategy and open a demo account to try your hand at trading, risk-free.

There are various pitfalls and potential roadblocks in the way of any first time trader, but the benefit to understanding what the more common mistakes are is learning how to personally avoid them.

Below we take a look at the biggest mistakes made by traders:

Not planning for losses

Many first time traders are under the impression that trading is simply an easy way to make money, and comes with no real risk. This could not be further from the truth. If you have bought in to making money in this fashion off the back of a recommendation from a friend or colleague, do your research first. Having nothing in the form of a loss management plan will likely see your career in trading finish before it has a chance to begin.

Focusing exclusively on profit

This can be a crucial mistake, as you are essentially allowing the finer details pass you by. While yes, you are trading to make money, the key here is that profit is a result of successful trading. If you are too invested in spending money you have yet to make, you are not really committing to what it takes to become a long time and successful operator. You can never learn everything, as this industry is fundamentally based on speculation. You can always learn something new, so get studying and develop your approach.

Not managing money the right way

If you are, by nature, someone who prefers the gung-ho approach, then trading may not be for you. Lack of emotional control usually leads to poor management of money, which culminates in a sobering wake-up call that will see you lose and lose fast. In order to avoid being ousted from the game before you have a chance to really find your feet, devise a plan which will outline just how much you are prepared to lose. Don’t risk money you cannot afford!

Attempting to trade with no idea of how it works

A fool and their money are easily parted, so the proverb goes. Why would you essentially risk your cash on something which has no substantial chance of working out. If you cannot read charts, have no idea how markets differ and are generally treating trading as a lottery then you are heading for disaster areas. If needs be, get as much help as possible. Watch videos, or consult professionals for advice and assistance on an action plan.

Making the decision to pursue a career as a trader can potentially be one of the best choices we can make. With the right preparation and understanding of what you are getting yourself into, you may one day be able to leave your 9-5 and enjoy life on your terms.

January 2, 2021 Update: We have just announced our BEST STOCK NEWSLETTER of 2020 AWARD!

CLICK HERE to find out which stock newsletter was up 78% in 2020 (and whose 2019 picks are now up 113%).

*** Our Award for BEST STOCK NEWSLETTER of 2020 ALERT ***

Updated January 2, 2021

At WallStreetSurvivor, we subscribe to dozens stock recommendation and advisory newsletters. There is ONE newsletter that is constantly outperforming all of the others--The Motley Fool Stock Advisor.

Five of their 2020 stock picks have doubled and the average return of all 24 of their stock picks for 2020 is up 78%!

We have been tracking ALL of the Motley Fool stock picks since January 2016. That's 5 years and 120 stock picks. As of Friday, January 1, 2021 the Motley Fool's January stock pick (TSLA) is up 720%, their March pick (ZM) is up 172%, their April pick of SHOP is up 226% and their June pick CRWD is up 120%; and another two have more than doubled. In addition, 10 of their 2019, 12 of their 2018, 11 of their 2017, 15 of their 2016. Most impressively, over the last 5 years that we have been tracking every recommendation, their average stock pick is up 209%--tht means over the last 5 years their stock picks, on average, have TRIPLED!

Now no one can guarantee that their next picks will be as strong, but our 5 years of experience has been super-profitable. The important thing about the Fool stock picks is you have to buy them the day they are recommended because they usually pop 5-10% in the first 72 hours after the release their recommendation. You sure don’t want to risk missing out on their next pick.

Normally the Fool service is priced at $199 per year but they are currently offering a NEW SUBSCRIBER DISCOUNT that allows you to get theiir next 24 stock picks for just $99/year. HERE is the LINK to visit their New Subscriber Discount page.

CLICK HERE to get access to all The Motley Fool’s Stock Picks and their next 12 months of picks for just $99 per Year! 



Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW (before it’s too late)

Comments are closed.