Trading stocks, commodities, and currency is a minefield. That’s why I set up the Tim Sykes Millionaire Challenge to help my students avoid many of the most common trading mistakes.
But right now, traders all over the world are making four crucial mistakes. Those errors are destroying their investment portfolios. I’m going to show you what those mistakes are and what you can do about them.
You’re Too Cautious
Trading always comes with risks. You can’t trade and not take a risk because the game just doesn’t work like that. Many traders accept that but they’re too cautious in their trading. They miss out on opportunities as they don’t recognize the golden gooses until it’s much too late.
Take Bitcoin as an example. The price of Bitcoin settled around $1,000 at the start of 2017 and towards the end it hit just under $20,000.
The overly cautious investor missed out on those Bitcoin gains. By the time its success became apparent it was already too late to ride the wave.
You Lack Routine
Trading is about repetition and routine. It’s about sticking to your trading strategy and ensuring that you’re always trading at the right hours.
It’s the only way to get accurate data that you can look back on. If you trade randomly and wildly your data is skewed and it becomes impossible to draw conclusions.
You should trade exactly the same hours every day and stick closely to your trading strategy.
You Don’t Have a Mentor
Let me hit you with a question to illustrate my point. What do Steve Jobs-Bill Campbell, Mark Zuckerberg-Steve Jobs, and Bill Gates-Warren Buffet have in common? These pairs were all mentor pairs. Those are huge names and it shows that even leaders need mentors.
You should look for a mentor who has already achieved what you want to achieve. That’s the point of the Tim Sykes Millionaire Challenge. I provide mentorship for a select few students who want to work hard and go big.
You Quit
We all have bad days with big losses. And I’ll be honest and say that there were days in the beginning when I did have momentary thoughts of giving up. But I didn’t, and you shouldn’t either. Quitting could mean that you were only weeks from scoring that breakthrough that would change your life.
Look at Apple investor Carl Icahn. This highly visible fellow promoted Apple constantly when he owned stock in it this past year, believing it to be undervalued. It was undervalued, and he sold his shares for about $2 billion. But although he made a profit he gave up on his philosophy.
That led to him leaving $3.7 billion on the table. He claimed less than 50% of the available value that he himself had predicted. And all because he gave up.
Think about it like this. If you quit on the investment you made it was all for nothing. All those hours spent learning your craft have gone to waste.
Last Word – Fix these Problems
Want to trade better?
Fix these problems right now. Failing to do so will ruin your portfolio and ensure you never achieve your goals. Start making an action plan now for how you’re going to make 2018 a profitable year.