In my years of trading, I’ve come across many mistakes that will make you kick yourself, to say the least. We all make them. Some of us, all the time. It took years to acknowledge what lost me a great deal of money and, in turn, overcome these challenges. So I have compiled a list of the top ten mistakes a trader can make to help you, other traders out there, understand these challenges in order for you to jump start on correcting these mishaps.

1. Greed – This is the killer.

Solution: Plan the trade and trade the plan. Be happy with reasonable returns. Take the money and run.

2. Reversing Your Position

Solution: Exit a trade according to your trading plan, not because you got spooked out.

3. Trying to Pick Bottoms and Tops

Solution: If you did, you got lucky. Just go for part of the move. It’s okay to leave some for others.

4. Lose Your Cool

Solution: Good Trading is boring trading. Again, plan your trade and trade your plan.

5. Waiting Too Long to Pull the Trigger

Solution: Continually study charts and paper trade to develop the confidence. Just do it.

6. Letting Losses Run.

Solution: When the market tanks, cut loose and preserve what you have left.

7. Avoiding Stops

Solution: At some point, you need to recognize a bad trade, even if you’re down 50%

8. Following the Crowd

Solution: They don’t know any better, why follow them? Be secure in your own thoughts.

9. Too Many Open Positions

Solution: Stay focused on no more than several manageable positions. Make sure you know how much you can handle.

10. Not Doing Your Homework

Solution: Whatever your strategy, ensure your position is justifiable. Know your stock.

Being aware of these conditions is your first step to overcoming them. Stay detached and good trading to you!


~Hugh W. Grossman, Head Trader at Day Trade SPY.


Hugh Grossman is the founder and Head Trader at DayTradeSPY and uses his vast experience to teach his methods to make consistent daily gains trading SPY options. Join Hugh in his interactive Trading Room to see how he regularly pulls in the profits!

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