I recently decided to take on some clients into a mentor ship coaching program and after only a few weeks I am starting to see very similar patterns and mistakes as to why so many people are losing money. I mean I know why I lose money when a trade doesn't work but its for entirely different reasons then what I am seeing with other people.
I'm going to list some of them out in a few blog posts, so I hope this helps some of you to correct this thinking.
Mistake number 1 (The Reversal Mindset)
You put on a trade and the price moves from A up to B and you exit the trade. Immediately you feel like you should now go in the opposite direction from B to A !
Excuse my french but ... What the Hell ?
Almost every person that I'm coaching has this same problem and I'm assuming that many many more people do.
Here is a better way to think about it. Your trade moves from A to B ... go golf !
I know that sounds stupid but the simple fact is the trade worked and its OVER now go find another trade that was just like the one you made money on.
Ok I've finished my little rant lol but I hope this simple little blog posts helps you think a little differently about what you do that could be causing you to lose money :)