20 Most Common Trading Mistakes · and How You Can Avoid Them by Butcher, Kel -- Read -- Imperial Library of Trantor

Index

Cover Contents Title Copyright Dedication Acknowledgements Introduction It’s not my fault — I didn’t even know it was a mistake!

A great pick-up line How much did that cost? Analyse to understand Oops, sorry, my mistake Prevention is better than cure First time it’s a mistake, second time it’s my fault, third time I’m an idiot Avoiding the blame game

The horse goes in front of the cart

Building from the ground up Teaching the old dogs new tricks Patience is a virtue Choosing the shoe that fits Reality check required

Failing to plan is planning to fail

Write it down Only fools have no rules Transfer the funds to my account, please Do it now It’s evolutionary, baby

Get that monkey off my back

Somebody else must know more than me!z Three schooners and 1000 BHP shares, thanks mate Suffocated in a strangle Ah, sorry mate, you know that share tip? Well... Quiet please, the movie is starting

Nice knowing me

So you think you can... sing? Developing your skills Simulation versus fantasy Add in a healthy dose of realism Cheering for the team Looking in the mirror Aligning the planets

Easy come, easy go

I’m not slow, I’m a turtle! KISS this Enter at your own risk Running away from your ego Making the shift

Complex complexity

Analysed but paralysed Keeping it simple Trader development

Too many contracts, not enough shares

One head, two hats It’s simple, but it ain’t sexy! Thinking beyond the obvious Position sizing Decisions, decisions and more decisions

1000 per cent return in three days — sure, it happens all the time

Learning to play the piano A reality check Doing what it takes Sorting the wheat from the chaff

Heads, I win; tails, you lose!

You loser! So, you’re expecting... Crunching the numbers Sample size The past ain’t the future ... (yet) What’s your edge? Creating certainty in an uncertain environment Keep it real

Bet big to lose big

Margin or leverage — what’s the big deal? Ramp it up... ... and smack me down A double-edged sword Share trading on margin (margin loans) Predicting the market top

What’s the time, Mr Wolf?

What’s your time frame? Long and short beans Don’t burn the cake Money and time Clarity is king

Where the ^!*# is the exit?

Trying to out-think the market Getting trampled by cattle Mental stops for mental cases I just wanna get it right! Shooting for a target The trader and the shoe salesman Getting greedy for coffee Using a trailing stop The eternal optimist Why trade with exit rules? The magic ingredient?

But the guy on TV said it would go up tomorrow!

It must be right — I saw it on TV Hey, it’s not my fault, I only drank 10 beers! Practising and practising the violin A good tradesman never blames his tools

Half price and still too expensive

The chasm of despair Riding the trend If you want my advice... Take the money... and wait An emotional train wreck Learn and prosper

I’m right! The market’s wrong

It’s not only about the money One day at a time Ego is a dirty word When the rubber hits the road Mindfulness Watching you, watching who? Adopting a disciplined approach

The emotions of a robot

Consistently inconsistent Underperformance Do you see what I see? Picking fruit Managing the system Understanding drawdowns A trader’s mindset What colour is your box?

Overworked and underpaid

Too much or not too much — is that the question? Errors, instability and dirty laundry A line in the sand Who are you? Getting it right

Fat fingers, 10 000 too many and busting trades

Who fears the executioner? Redefining the role of the broker Oh, #@%&! I pressed the wrong button! Common trading errors Avoid the grief

I’m sure I filed that somewhere ...

Trader or investor Don’t be an ostrich Spreadsheets and computer programs Online record keeping Backing up Pay a bookkeeper Defining your activities — an Australian perspective Shoes in a shoebox, records on a spreadsheet

Glossary Index