Erik and I have witnessed thousands of traders come and go and there are some very common mistakes that prevent progress:
1. You are a part time trader, very hard to be good part time.
2. Trading too little. You have absolutely no shot to make a living on two trades a day.
3. Trading too much. Placing orders because you have no discipline.
4. Allowing yourself to lose twice as much as you earn on good days.
5. Not focusing on which stocks you actually earn money in. (Erik and I will trade the same stock for months at a time if it is easy to read)
6. Too much focus on exact chart points and expecting charts to make you money. Charting gives you ideas; managing trades and risk is how you make a living.
7. Too much concern with “how much should I earn on a trade.” If you like a trade and it is working out hold it, if it is not working out kick it out I don’t care if it is for a two cent loss. Reevaluate and get back in if you still like the idea.
8. Not routing orders properly. Some of you have ECN fees that are much too high.
9. Trading too many stocks. Learn two or three stocks and beat the hell out of them.
