The Seven Deadly Sins of Trading.
There are seven deadly sins of trading, and all traders should do their best to avoid committing these mistakes at all cost. This can be quite challenging. It’s easy to commit one or two of these sins without even realizing it, but the key is to recognize when you’re committing a sin and learn how to prevent it from happening again.
The Deadly Sin of Greed: If a trader takes excessive risk in the hope of making abnormally high returns, then that is the sin of greed.
If a trader takes excessive risk in the hope of making abnormally high returns, then that is the sin of greed. This is probably the most common sin committed by traders. It is also one of the most fatal sins that a trader can commit. The reason for this is that it often leads to a fall from grace in the form of massive losses. In other words, greed can lead to bankruptcy and ruin.
In order to avoid this sin, it is important for traders to understand that they are not playing against each other; they are playing against market forces that have been around since time immemorial and will remain so until time immemorial! If you do not believe this statement, then try trading on your own without any advisors or mentors, and see how far you get before you lose all your money!
The Deadly Sin of Anger: The opposite of greed is anger, and this too can lead to huge losses.
The most common emotion that gets traders into trouble is anger. Anger can be defined as an intense displeasure or hostility felt as a result of being offended or humiliated by some action or event. It is this intense feeling that often causes traders to make rash decisions about their investments when they are angry. In fact, studies show that over 80% of traders admit that they lose money when they feel angry about something in their lives outside trading, such as family issues or financial problems.
When traders become angry at something outside of trading, they tend to make irrational decisions based on their emotions instead of facts related to the market itself, which leads them down a path where they end up losing money rather than making profits from their investments.
The Deadly Sin of Envy: A trader who is envious may follow strategies that are not consistent with the capital in his account.
Traders are human beings, and humans are prone to making mistakes. However, when you’re trading a consistent strategy, the most common mistakes you can make are those that result from envy.
Envy is an emotion that causes you to feel jealous of other people’s success and want for yourself what they have achieved. It’s an easy pitfall to fall into because it makes you feel like there’s something wrong with you—that instead of being good enough, smart enough, or skilled enough, something has gone wrong and someone else has ended up ahead of you.
But the truth is that nothing has gone wrong. You’ve worked hard to follow your strategy, and now it’s paying off! But what happens when something goes wrong? What happens when your strategy doesn’t work? That’s when envy can really start infecting your trading decisions.
The Deadly Sin of Pride: A proud trader usually does not use a stop loss as he is proud of having made such an accurate forecast in the first place.
This is one of the most common sins of trading committed by many traders. They are so convinced about their ability to make accurate forecasts that they do not mind losing money if their prediction goes wrong. Many times, these traders will only employ a stop loss after their losses have reached a substantial amount, which may be quite large by then.
The Deadly Sin of Lust: A trader who has an urge to trade compulsively might overtrade.
Traders have the opportunity to make a lot of money, and that’s great! But it’s important to remember that trading is a job, not a game. While it’s easy to get caught up in the excitement of making money, you need to stay grounded and be sure not to let your emotions dictate your actions. If you find yourself feeling the urge to trade compulsively or like you can’t stop thinking about trading, it may be time to take a break from your trading platform.
The Deadly Sin Of Sloth: Traders who give up easily or do not put enough effort into learning the trade are committing the deadly sin of sloth.
When you’re a beginner at trading Forex, it can be easy to get discouraged and feel like you’ve made a mistake. You might start to think that trading is not for you. And that’s okay! We all have to start somewhere. But if you really want to make money in the markets, then there’s no time for giving up on yourself.
It is important to remember that every trader faced their own struggles when they first started out. But through hard work and dedication, they were able to overcome them and become successful traders. If you want to be successful as well, then you must first accept that there will be many obstacles along the way—and then take actionable steps towards overcoming them!
The Deadly Sin of Gluttony : Some traders take excessive risk by trading far more contracts or shares than they should.
Traders who are excessively greedy are likely to fail because they will be tempted to take excessive risks. Some traders take excessive risk by trading far more contracts or shares than they should. They also tend to trade with a lot of leverage, which means that they borrow money from their brokers so that they can buy more contracts than they could afford on their own. This is very dangerous because it means that any losses will be magnified, and if you don’t have the capital to cover them, then you could go bankrupt very quickly!
You need to avoid these sins to be a profitable trader.
There is one more thing I would like to say. In order to have a positive trading experience, it is, of course, important to avoid the trading sins described above and much more. But I believe that you must also make it your goal to accumulate as many positive trading habits as you can. The more you trade, the better at trading you will become, and one day you’ll be amazed that what seemed impossible yesterday is now second nature. Best of luck to all traders!