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no stop loss set , hero bias and information overload - killers to avoid

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Joined: 9 months ago

When I started trading stocks back in 2017, I was getting a lot of information. When you lose money, you start "tuning" your program. Or you start reading again to find that perfect program. What happens is, people have different opinions and different trading systems, and they trade different instruments. You know many different systems, you "know" many theories, but only in theory, not in practice. Then you're going back and forward, you can become stuck very quickly because you have information overload. Or you can fall into the trap of hero worship. You find a guy who is selling his boot camps, with big promises, by overexposing yourself and taking big risks in crazy instruments. He's talking about volatility and how good it is, he talks about shakeouts, no stop losses, etc. All crazy ideas. When you're new in this business all goes to your subconscious mind. And all this ridiculous advice stuck with you. He becomes your role model. Though maybe he never really succeeded in trading stocks, and you follow him religously, by refusing any advice that contradicts his. Especially, if this advice doesn't overpromise. I fell into hero worship and information overload. And I know people who fell for no stop-losses. They fell for it, because of hero-worship. 

Learned: be careful of what information you consume. Find out your character and what trading system suits you. Then find your system and follow it. If traders who have made money trading are saying these are the golden rules - more than not, they often are. Don't be hero-biased. USE STOP LOSS. Learn more about psychology and trading systems. Filter out the noise and all the crap. Don't fill your head with futures markets, forex, stocks, penny stocks... find one. If you are serious about it, find a serious instrument and something that is tradeable. Stop acting like a starter and copy those who really trade, who make money, how they act, and how they think. Start from the beginning being and acting as you look at it as your business. And again, use a stop loss. Have a great one!

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