New Trader Mistakes to Avoid
"what NOT to do"
The #1 mistake a new Nexgen user will make is trading live money too quickly! The rules are simple. The experienced users make it look so easy. However, new traders must build "unshakeable" confidence in the plan, his or her ability to execute precisely. "Confidence," it must be earned the hard way. The trader must put in at least 500 +/- "correctly executed" simulation trades & manage those trades on live market and replay. 2-6 months is not uncommon if it is done the first time properly. When possible, participate, get feedback on trades, really make sure you are doing things perfectly. DO NOT FALL VICTIM TO HUMAN NATURE AND TRADE LIVE MONEY TOO EARLY!
The #2 mistake - Simulator millionaire- losing live money! The #2 mistake is trading the wrong setups and incorrect trade management. Usually a result of mistake #1 above. When you practice incorrect rules on simulator or replay, or the forbidden #1 LIVE MONEY TOO EARLY, terrible patterns emerge. The trader wins and is given false confidence in their trading abilities. Abnormally, brave on the simulator and taking undue risks, or just getting lucky. The minute the trader goes live, every shortcoming in their prep, plan, and execution will be exposed. Confidence will be destroyed along with the account balance. This is when you must fight human nature and POST YOUR TRADES IN CLASS FOR FEEDBACK.
The #3 mistake-Counter-trend trading- SO TEMPTING RIGHT?!- As a new trader learns termination conditions, the temptation is not to wait for the triggers to turn before they enter a trade. This is so they can be first and look like a hero. You do not have to be first; you must win! The general rule for attempting counter-trend trades is only after have generated $20,000 in profit using LIVE MONEY! This will prove you are a winner. You have earned the right to add additional trades into your plan to improve your bottom line.
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