Why Do Traders Make Mistake "lack of trading plan"?The answer to the question "why do traders make this mistake" could probably apply to all of the mistakes on our site. The primary cause of this mistake is simply the lure of easy money. The underlying thought seems to be "why bother wasting a lot of time planning; why not start getting rich right away?" This is understandable. There is probably not a soul on this earth who works for a living who has never once dreamed of making some huge sum of money quickly and easily and then living a life of spoiled luxury from that day forward. And the fact of the matter is that futures trading offers just that possibility (which is exactly what makes futures trading so alluring, yet so dangerous).
Let's face it; these numbers are staggering. Who in their right mind wouldn't want to achieve the kind of success that these individuals have? Unfortunately, most individuals tend to focus not on the "achieving" part of the process, but rather the "post-achievement" period. In other words, if you asked the question "could you imagine having this much success trading futures," most people would not begin mentally drawing up plans as to how they would trade soybeans. Quite the opposite. Most people would start drawing up a mental laundry list of all the things they could do with the money. The "doing" part is not nearly as sexy as the "done" part.
One of the greatest dangers in futures trading is the danger of high expectations. By focusing optimistically on how much money he or she is going to make, a trader can easily overlook the more important task of planning out how to deal with all of the bad things that he or she will inevitably experience. If you are walking down the street and you trip and fall that is one thing. But, if you are standing on a mountaintop and you trip and fall that is something entirely different. And if you aren't even aware that you are standing on a mountaintop and you trip and fall, then the only words that apply are "look out below!" Traders who focus too much attention on how much money they might make run a very high risk of a frightening slide down a steep slope. The Recipe For Trading Success that Nobody Wants to HearAs with any other endeavor, successful futures trading requires a great deal of hard work. There is hard work involved in planning and there is hard work involved in following the plan. In the case of futures trading "hard work" more often takes the form of making and following through on difficult decisions, rather than on any type of actual physical chore. If you hope to be a successful trader you must be prepared to pay the price. The first step begins with developing a well thought out trading plan that covers all of the key elements involved. |
Lack of Trading Plan |
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