10 Things a Terrible Trader Does

I stumbled across this post on Positively Positive about solving difficult problems using the inversion technique. Excellent stuff so I recommend taking a minute or two to read it. I decided to put my own spin on it and make a list of things a terrible trader does. Not only will this exercise help me improve moving forward as a trader; it may give me a new rule or two to implement into my trading regimen.

1. Take on too much size/risk
A terrible trader would trade larger position sizes than his/her account could handle.

2. Trade without a set risk
A terrible trader would not have a stop

3. Add to a losing position
A terrible trader would add to a losing position

4. Trade without a plan
A terrible trader would just wing it and get into positions based on emotions and/or opinions

5. Follow others into a trade
A terrible trader would attempt to execute someone else’s plan

6. Revenge trade
A terrible trader would attempt to “get even” with a stock

7. Trade based on opinion
A terrible trader would take a trade because they think a stock is too low or too high

8. Let their emotions take over
A terrible trader would let their emotions dictate their trades not logic or reason

9. Not pay themselves
A terrible trader would not take profits along the way to pay themselves

10. Trade for fun
A terrible trader would not treat trading as a business and would not make money

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12/18 Watch List

Opko Health Inc. (NYSE: OPK) watch for a weak open for red/green and possible continuation if a trend holds

OPK-12-17

Cerus Corp. (NASDAQ: CERS) would be interested in a long on dips if the trend holds

CERS-12-17

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12/17 Watch List

Novogen Ltd. ADS (NASDAQ: NVGN) weak open for red to green OR failed follow through for a short. A lot of volume so don’t be too short biased until it sets up

NVGN-12-16

Ubiquiti Networks Inc. (NASDAQ: UBNT) watch dips for long entries if the trend holds. I think this can go higher

UBNT-12-16

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12/16 Watch List

DHT Holdings Inc. (NYSE: DHT) watch for either a weak open for red to green long OR failed follow through for a short

DHT-12-15

Teekay Tankers Ltd. (NYSE: TNK) look for a push out of the open and parabolic for a short. Could also have failed follow through

TNK-12-15

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