Psychological Pitfalls in Trading

In all my years of trading and talking to fellow traders, I have noticed that newbie traders are susceptible to four main psychological pitfalls. Let’s take a look at each one and examine them carefully. Hopefully, after reading this, you will be able to see them coming and stop them before they destroy your account.

1. The Desire to be Rich

The desire to be rich manifests itself in many ways. If you think about it, the majority of the issues that newbies have, such as over trading or poor money management, stem from the desire to be rich.
Trading will not make you rich in the short term. It will likely take years before you’re trading well enough to leave your day job. If you started trading last week and you plan to quit your job in six months, because you anticipate being rich enough to buy a Ferrari, you are delusional.
Trading is a career, not a

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