What are some of the flaws of Benjamin Franklins

Common mistakes in trading: Part 1

As Benjamin Franklin said, "Those who fail to prepare prepare to fail". In the world of trading, failure like this can mean a painful financial loss. Therefore, it really pays to prepare thoroughly before entering the market.

  • Take advantage of the multitude of resources available: books, courses, conferences, the Internet. Always be informed about the latest ideas and methods
  • Take the time to understand the markets that interest you, how they function and behave
  • Create a trading plan that is fair to your goals, skills, and knowledge and sense of risk
  • Practice with a practice account: this way you will become more familiar with a trading platform and can try out strategies in a safe environment

You may know some seasoned, successful traders who make it look easy. But unfortunately, opening a position and waiting for profits is not everything - a certain level of skill and knowledge is essential.

Too many traders act rashly and with inappropriate confidence and are punished by the markets. Be different.

Don't follow the plan

Let's say you are traveling from Frankfurt to New York. Would you just leave the house and go without researching the route and tickets first? Without prior planning, you would probably not get there.

Similarly, executing a trade haphazardly can be a source of trouble.