Every traders goal is to make money in the markets. We do countless hours of research, reading, and backtesting hoping to find that optimal point of knowledge that will make us a consistently profitable trader.
Unfortunately, most Retail Traders end up searching for the incorrect information that will actually lead them further away from the truth.
As stated in my previous blog, the trading industry is filled with lots of noise that may actually steer you off course without you even noticing, and perhaps finding out you were looking in the wrong places months or years later.
It is extremely difficult to avoid these common pitfalls as they are not intently meant to mislead you.
The truth is that most people are actually all searching for the correct insights on the markets and bloggers may be genuinely trying to help you, but do not know themselves that they are giving out the incorrect types of information.
Now combine that inefficiency along with the noise that is on social media nowadays where there are legit scammers who are trying to lure you into their traps just to profit off of you.
It is like driving at night on a pitch black road in the middle of the wilderness with no street lights. Those of you that have driven through the desert highway corridors of Arizona know exactly what I am talking about.
So there are a couple of elements that I would like to touch base on in this blog that you should start to focus on more and hopefully it brings more clarity to mind and helps you along your journey.
Trading Flaw #1 Leverage
The top of the chain when it comes to appealing things that brings most retail traders into the industry is leverage.
Having a sufficient knowledge on leverage and how to properly use it is essential to your overall journey as a Retail Trader.
Everyone knows a little about leverage from the amounts of advertisements that you see online through financial websites on the side banners of brokers offering high amounts of leverage for a small minimal deposit.
But what you really don't know is how deceiving these adverts actually are.
Sure you can deposit as little as $100 USD and even less and trade with 500 times your trading capital or I've even seen some brokers that go as high as 3000:1!
But leverage is also considered a "double edge sword", in which you can use it to your advantage if you understand the proper risk to position size or it can also impale you and get you eliminated out of the trading profession very quickly.
When trading with such high risk, what the broker doesn't tell you is that it actually limits your flexibility in the markets and disables you to utilize certain long term strategies that will actually benefit you in the long run.
In short, the higher the leverage, the smaller your stop in the markets, which ultimately reduces your ability to see the bigger picture and forces you to use tighter stops, that ultimately forces you to have no choice but to trade in the smaller timeframes that makes you reluctant to even peeking at the larger timeframes where the big money actually moves the markets.
This allows over 90% of Retail Traders to lose their money within the first couple months of trading.
Trading Flaw #2 Self-Actualization
Finding out your own strengths and weaknesses is the toughest part of trading.
Really, think about it, in this life your greatest competition is yourself.
Most failures in life always find others to blame and external sources to their problems, it is hardwired from birth.
So, I can literally give you the L.I.F.E-G.R.I.D System for free along with many other profitable systems and you will still be unable to use it successfully.
Why do you think I don't go searching through all of my students to see if they've stolen it and tried to resell it? YOU CAN"T TEACH WHAT YOU HAVEN'T MASTERED!
It is as useful as a used tissue if you do not know its rules and how to properly execute it along with your own flaws.
A decade old saying goes, "the beastly entity known as The Market will expose you of all of your flaws; lust, discipline and panic.
In order to become a consistently profitable trader, you must defeat these trading sins.
That is all for now!
If you like what I blog and can relate I have a FREE FOREX EBOOK available here and also check out my FOREX Academy to learn my profitable L.I.F.E-G.R.I.D System which will help accelerate your journey.
I have been trading the financial markets for the past decade and have failed to the point where there were no other ways to fail. I trade for myself with my own financial resources and enjoy the freedom of being my own boss managing my independent business built from the ground up. Feel free to message me anytime with questions.