3 Most Common Trading Mistakes

In this video David draws our attention to some of the most frequent mistakes that traders make. From fighting the trend and opening positions with unreasonably large sums to having stop losses too close, David discusses all these scenarios and shows how they unfold on real charts.
While not following the trend and placing stop losses are more technical tasks, how much money you put in a trend is something more psychological and this money management is often something traders underestimate. If you have a large position and every small move against it makes you feel a range of negative emotions then that increases the chance of a mistake.
So after watching the video you should be able to avoid these pitfalls and become both technically and psychologically a better trader. Write in the comments if you have any questions about the three mistakes and let us know what else you'd like to see David talk about.
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[@Some0ne001]

my top 3 mistakes ive learned. 1. Dont trade the second the market opens, give it a bit to set its course. 2. Never trade against the trend. 3. Be patient

[@chriscarguy]

Best advice I’ve heard so far!

[@kingsmill9719]

Complete noob here but I’ve been making fair returns on the CFD side by trading against the trend. I generally pick anything where I can compare the months graph to the short term and it’s almost always right! Short term looks like it’s going up but I can see from the long term it will almost defo go down.

[@user-fd8vu2yl1f]

Facts!

[@bossmen6665]

gold usually shoots up when the market opens again after the weekend. then slowly go back down

[@daniellimo4087]

A trader told me that if I dont sleep well when I have a trade running overnight, my risk is too big. That has been my best risk meter since

[@DhirC35]

Great advice

[@diorocks5858]

jesse livermore qoted that, trade down to the soft pillow at night

[@bossmen6665]

i can't concentrate at other stuff when i have an open position

[@mobiusgrey9522]

Very easy with a chart that's already drawn, not so easy when there's nothing but black space to the right.

[@jeskg720]

yes in hindsight its all easy. Prediction value of a chart is very low

[@borntodoit8744]

@Alex 163 you guys are so naive...do your research don't just settle on the first strategy that seems to work Lesson 101: markets are cyclic so yes yes you can predict what happens next to the right (based upon the last impulse correction combination seen on the left). Elliot Wave trading ( macro chart patterns) does this to some limited degree. Learn to trade using Wave Trading ( micro chart patterns ) which is a superset theory (includes EW) Absolutely allows you to predict next chart trend movement. With common sense determine when best entry exit is to profit consistently Checkout channel WE TRADE WAVES !!

[@jz5748]

😂

[@Jdoug305]

BornToDoIt legit all they need is divergence 💀💀

[@westilldontknow3407]

predicting horizontal support levels is easier.

[@CTNinjaCat]

(1) go with direction of market (2) if more volatile set wider stops (3) don't be emotional (4) Bonus:trade small - survive to trade another day

[@peterhobbs16]

Great summary CTNinjaCat!

[@hannible1002]

don't be emotional is number 1

[@andretirta9801]

trade with high risk

[@matteofabrizio409]

Emotions and not putting it all on the line is key. Don't be greedy and try to be like these guys that risk their entire net worth and happen to get lucky and get rich, you won't be like them. You think you will but you wont. Most of them selling that dream are full of shit anyways.

[@rumblefishoutdoors9150]

"don't be emotional" i hope everyone read that

[@madinkan]

""...and people don't have the attention span these days"". Did he just call me stupid? You are godamm right!

[@Cowwy]

My trade always flop the other way as soon as I buy. When I sell, it does the same thing. LOL

[@dieseldawg7132]

Cowwy seems like they know we are online lol

[@mateicaldare7252]

😂😂

[@dods4496]

Me too

[@jasonburden7999]

I'm no expert on trading but I've heard that some stocks get dominated by institutional traders i.e. algorithms that make it very difficult for normal traders to make money. Perhaps finding stocks in play by retail traders would help? Best of luck in your trading journey!

[@Parabletrader]

The trend is your friend till it bends

[@bitminer8956]

As it's trending up you can set your stop up and up, thus locking in profits. Unless you pick the literal top in the wrong direction (insanely hard to do unless you do so against resistances) you're golden.

[@Lunalunegirl]

Sounds like a poem

[@mrkaygee100]

😂😂😂

[@Yellowjack17]

... but only at the end.

[@azizrimi2978]

rapping 213

[@Galaxia53]

I have been practicing on a demo account for a long time now and I can imagine that a big mistake many people make is to not practice first on a demo account.

[@austinlenzen8371]

Setting the stop loss too tight is definitely the first lesson I learned the hard way when I started trading.

[@garyshaw8449]

this guy should be in a james bond movie

[@imavileone7360]

Haha good guy or villain?

[@lechtrader886]

Fallowing the trend, :)

[@dimitriosmenounos1009]

or ... pirates of the caribbean playing davy jones

[@Ghost0fDawn]

I thought this guy was james bond.

[@genesissounds527]

Reminds me of Pierce Bronson.... 007

[@synthartist69]

Good advice. 90% of my trades turn against me the second I get filled, no matter how low I buy or how high I short. I used to use tight stop losses and buy huge lots and yes, they would take me out or cause me to panic. I had to learn to not be greedy and to buy small lots on each trade. My trading has improved drastically after using the same approach explained in this video. I only make 150.00 to 300.00 a day now on a 55K account, but it is better than losing 1000 to 3000 per day getting stopped out or selling during a panic.

[@bmwe30club64]

If may ask how do you possibly an uptrend or down trend on the market though?

[@Yannick8164]

Look into Bill Williams's fractal trading

[@everclara2061]

I’m an amateur but 150-300a day gains sounds awesome. That’s typically what some people get paid for a days worth of work lol

[@ginicholas4322]

+Ever Clara yeah but he has 55,000 in his account which honestly I think he could do a bit better some get that having less than half of that in their account. I know some could do it having only 10,000 in their account. I mean heck I could probably do that on some weeks (gain around $1,000) having only 8,000 in the account especially when earning calls are hot. Helps a lot also if you have access to pre and after market hours.

[@user-ub3qr4bj8g]

Use Volume Profile and Market Profile.

[@rizwan101]

Everything you said I knew already, but Ive never heard it so clearly and concisely...will be returning to it to continuously remind me. Hard thing to tame myself...get success and then suddenly break my own rules and fail.

[@XLpacman805]

Hey great video! Very informative, no rambling or fluff! Good audio, good camera angle/screen capture. Good length. Thanks for the video, I subscribed!

[@sachseo.5530]

Rigjt on spot! Previously I have been setting my stop loss too tightly only to find out later in the day that the price broke my target.

[@smudgepost]

Calm and clear, you're a good tutor David!

[@brandond.6748]

I typically set my stops by subtracting the ATR * 1.5 from the price. I cut my losses quick and lose most of my trades but I am still profitable though. Because when I do win, it's big. And when I lose, it's small.

[@lorisdc9146]

This is the best video ever for a novice like me. Thank you so much!

[@WildandFree4]

I've just found your channel. OMG you are the easiest to understand, that I have come across. Thankyou!!!!!!!! :)

[@VK4VO]

Confluence= price action, trend and KEY LEVEL and always look left off the dailies and weeklys

[@chocOneOOne]

I have to say this is one of the better channels out there that covers this stuff. The explanations are always concise and easy to understand. Great content and I'll be sure to send anyone looking for knowledge this way.

[@realFriedrichHayek]

OMG! I literally had my stop loss at essentially 0, and was trading £2000+ on one trade, that makes a lot more sense! Thanks :)

[@thisandthatfacts843]

Yes because the wicks always take me out

[@saileshram7610]

i hope your trading improved at least now mate

[@aaronadams01]

Great video. I am glad you mentioned setting your SL wider. I was first taught to set your TP at 3 pip and your SL at 3X your TP, which was 9 pip. I would back test the crap out of my strategy with this information and I would lose much of the time and I couldn't figure out why. Then I decided to back test using a larger TP and SL. What I found astonished me. When I would trade with a TP of 3 pip, I would only win about 55% of the time. Then I changed my TP to 6 pip and my SL to 30 pip and people told me I was crazy. I use the same exact strategy and I win 92% of the time now. I noticed the same thing you did, when the markets moving you need to give your trade time to work. Thanks for the video.

[@chewie1355]

Always giving out clear and make sense videos. Thank You Mr Bond. Aka David Jones.

[@Jose-ij9hi]

Great video and information. Thank you for taking the time to do it.

[@mtbceri]

Your videos are really helpful. Given me lots of insight. Thanks very much!

[@tharwatjad9444]

Perfect personal and professional analysis I love it, pin points the problem with many many traders Thank you so much

[@dfslkjhdsfgldfjh]

Subbed. Been trading a while and knew all this, but its nice to have a voice to bring your perspective back to reality. Thanks a lot for the video!

[@storiesshubham4145]

this person has great experience in stock market... keep it up... and thanks for helping other TRADERS..

[@Trading212]

Hi there. Nice to see you enjoy the videos.

[@shobharoy2033]

love your insights! This is indeed some basic caveats, and yet each of them are potential minefields even for experienced traders

[@bukiwemabona8674]

love your explanations, they very clear and understandable!

[@bamthebully]

Honestly who run things channel? Thank you so much for taking the time to put together these videos, no one wants to share knowledge with out cost. Thank you a ton for teaching and giving people the opportunity to be successful👌🙏

[@cameronshoesmith3779]

Finally an investing video with a decent mic

[@morganwarren8765]

Excellent, very useful video for all novice traders, respect the author!)

[@davidhey1092]

KEEP THE VIDEOS COMING! i love how easy it is to understand and watch! A++++

[@GetMeThere1]

Holy Crap!! I rarely watch youtube trading videos, but when I do they have been uniformly bad -- often to the point of being funny. I would say this is the ONLY youtube trading video I've ever seen that offers truly sensible and useful advice to beginning traders. I'm shocked, actually.

[@sonnyscoolvideos]

So true. Made all those 3 mistakes in the past. Thanks for a great video!

[@TGears314]

You threw something in there in less than one sentence that I've wondered for years and never really looked into because I always forget to ask. You said that the oil traded $1.30 or something and then you said that's 130 points. I never realized a point was a cent. That's amazing!!!! I've always heard about the DIA and Nasdaq in reference to points. And the DIA breaching 23,000 points. Now I understand that means it's trading over $230.00 a share!!! Thank you so much. It took less than a second of this clip to explain but it really helps me get my head around this. I wondered if it was percentages or what and now I know. Thank you so much.

[@cool2b88]

isn't one point equal to a dollar? so if a stock increases 5 points it means it went up $5.

[@TebohoStenaSekhoto]

A point is a pip and it stays the same. What differs is the profit because of different lot sizes. 5 points can yield $0.50 (micro) or $5 (mini) or $50 (standard)

[@rasadnadzafov1719]

For stocks, one point equals one dollar. So when you hear that a stock has lost or gained X number of "points," this is the same as saying that the stock has lost or gained X number of dollars. It is important to note here that we are referring strictly to stocks, nothing else. People often refer to indexes, bond prices or currencies being up or down X number of basis points, and basis points are different. One basis point is equal to 1/100th of a percent, so if someone says the dollar is up 50 basis points, this is like saying it is up 0.5%. Source: Investopedia

[@ginicholas4322]

+Tucker Garcia A point is a dollar not a cent! If they were cents there would be no use in commenting on points in markets like Nasdaq and Dow Jones

this has brought clarity to me , thanks . Increasingly with more knowledge the science is getting clearer

[@chrisacorn2559]

Brilliant, well presented and clear advice, thank you

[@varidian694]

I tried to pick the bottom of a XUA/USD and lost 90% of my equity - lesson was learned.... when it comes to being a trader it pays to be a sheep.... follow the flock, watch the MACD and literally do as the chart is telling you....

[@Darkest_matter]

Bullet Sponge Gaming market goes up when i sell and goes down when i buy even though the previous candles show that i should have bigger leighweigh.

[@jaybuck12321]

Great video to help with trading psychology. Needed to hear some of this! Thanks for the good content

[@kenmcd2014]

I wish I had watched your videos before I started. Many thanks for putting them out there.

[@ProsperNyawuza]

Thanks for this invaluable insight, I needed to hear this.

[@razial5745]

Mad Respect Man. You know what your're talking about.

[@33ebland]

Great advice regarding stop loss settings. I'm new, not trading actively yet, just taking it all in. Kudos!

[@PassportG]

Excellent video as always. 👍

[@Trading212]

Thanks, Ade. Stick around for more - fresh tutorials every week.

[@MegaShanes1]

Thanks David nice and simple.

[@parkfighter664]

Many thanks for those cristal clear advices!

[@MeltingTheta]

Wow. You simplified my issues in 3 simple steps. Thanks man ❤️🙏

[@Slaaayer92]

I love these explanations! You'd be a great teacher!

[@mikem3814]

Very helpful, well explained, easy to follow. Thanks

[@Trading212]

Hello. Your comment is appreciated. You can subscribe to the channel to stay in touch with the next videos - new content every week.

[@wackydackyk9015]

WHAT THEY WON'T TELL YOU!',

[@sharadavis575]

Great Video. Could you make more videos to show the trading mistakes. It's really important to us. Thank you so much

[@nickgreek3055]

Thank you David

[@NuEnque]

I like that you get right to it. All of the others that I follow on KZbin will spend up to 5 minutes NOT talking about the title of the video (the subject) that brought you to the channel.

[@monstersquad13]

7:00 Gold. Dont be afraid to set wide stops and trade a little smaller

[@DhirC35]

Definitely. Gold is very volatile.

[@ThisHandleFeatureIsStupid]

I didn't learn anything new from your video, but I stuck around for all of it anyway. That subtle needle about dwindling attention spans kept me around. I have a feeling we're irritated by many of the same things. :) Anyway, your videos are quite sound. Always a clean and concise approach. Good work, David!

[@tholahkhoza7229]

Yeah ey

[@eddyvideostar]

II Kasper: Then, think of this as a refresher video where you certainly would apply this in your trading -- this is when you learn! A better attention span will translate into a better application.

[@eru7]

That kept me around too lol

[@TestemunhadoDeusvivo]

Thank you for the video, what assets do you look into a company to invest long term ?

[@MFXCenter786]

Excellent video. have been making these mistakes in my trades. Now got a clear idea.

[@drstrange2292]

Love the video mate brilliant, i actually find it hilarious, my smart watch was going off like crazy and my phone, with the notification that the share value was dropping so i could sell, everyone at work thought i was nuts haha people just don't understand, trading it life....its life

[@omwithme6277]

Getting to be the only channel I watch, best lessons hands down!

[@Putra-hr8ig]

Thank you for sharing, love it

[@ipaulmagu]

I've done them all! But how can you tell whether it is going to be a trending day or range bound day. Any thoughts, would greatly appreciated!

[@MehmetKanik]

Thank you. Trading far too big made me make wrong decisions. Thanks for sharing.

[@D_Warme]

Thank you for your good advice. From Japan

[@thanchau4249]

Thank you so much for your video sir

[@johna.ludwig2311]

I agree 100%.....I wish I'd watched this 20 years ago when I started. Nice job.

[@dmob271]

Wow! Was really helpful...cheers mate

[@boysofneverland6970]

Great video. This explains all of my mistakes for the last week. Thanks - that was a wake up call I needed.

[@Trading212]

Hi there. Delighted to see you find the video useful. Subscribe to the channel and never miss a fresh tutorial - new content every week.

[@marketmindset9070]

Good video thanks for the upload David.

[@samratws]

simple & straight.. love it

[@louisd7242]

Thanks for sharing Dave. I made the stop loss mistake. 👍🏾

[@deepaksrivastava1089]

Excellent video as always.

[@mindsetmotivation1304]

clear chart and good explain. Thank you so much for this videos

[@TODOMATIO]

I so agree with you! And you remind me of James Bond (Pierce Brosnan).

[@davidjones2452]

That's the most insightful comment I have read on KZbin

[@hannible1002]

He is a big fibber! Good video. lol

[@BillyReedMusic]

Thanks for sharing this information!

[@begley09]

I don’t use stop losses on my ETF’s if I’m already down. The reason why is because over time history has shown that the market will always bounce back. Then on high growth risky stocks, I only invest what I would be willing to lose. Now I do use stop limit/loss if I am up in profit to protect my gains.

[@EGC316]

Great advice 👍🏻

[@lubyk66]

1. Cut losses quickly 2. Always feel comfortable entering a trade 3. Know your market

[@moneyprintergobrr6501]

Thanks for the short video. My attention span is so small I took a break after 1 min 30 to type this and probably will take another break or two.

[@TheMvegastyle]

I just started watching your channel and really appreciate the advice.

[@Trading212]

Hey there, thank you for the kind words! We appreciate having you with us and are glad to hear that our tutorials are able to help you become a better trader.

[@Flyahead]

very good points, thank you

[@NickIlVento]

Thanks!

[@paulsondmitriev1008]

Thanks for this great video

[@mr.e0311]

The very last thing I told myself after this last set of trades I made was 'shut it down and walk away.. dont obsess over the trades.' Then I came here to unwind and found this was the first video I watched. I like it!!

[@almawadauae5647]

Great info

[@janniroux5006]

Dear David ... Thank-YOU for reminding us again and yes I totally agree on all three . The other problem is that I will pick a bottom or a top . Most of the time I am wrong and the Market goes against me and my call or put is deteriorating. Instead admitting the mistake, I will through more money at it. The trend goes against you and it stock takes to long to turn around and the Warrants with a time decay becomes nothing. I have lost plenty .... Purely on fact that I can not sell, ....... and every day get worse and worse . I do agree that one should spend some time on the product you interested in and get the feel of it. Be careful of noise in the market, wild swings up and down . As Dave was saying, your stop loss is to tight. I hope you all do well, and may God Bless us all with new wisdom and understanding. Janni Roux South Africa.

[@urmomdabomb2698]

FANTASTIC video, very educational, your Intellectual discussions make me ponder the ultimate question. Wen lambo?

[@MoBeigi]

Really good video, very informative!

[@rdinizbh]

very well explained ! thank you

[@amantensue1734]

Brilliant. Simple and clear.

[@Noah1985HA]

Those are some very good pieces of advice

[@palashchowdhury9969]

Thanks for sharing these three tips. I am new & learning. Last night I lost a trade because I put the stop loss too close. I missed the boat & trade closed in 5 minutes. If I didn’t do that mistake I would make good money. Lesson learned from the trade & your video. Once again thanks.

[@coolbaaaay]

Simple but priceless

[@vappichi]

Well explained sir.Thank you

[@Trading212]

Hi, Anishad. Delighted to see you like the videos. Stick around for more.

[@AhmedHassan-fk1vr]

Thank you David, I have heard somewhere that the EU gave last week the ECB permission to buy bonds to pull up the EURUSD pair or the Eur pairs a bit higher. Is that true?

[@reapertheunique]

Strong advice that I need every few months. It's rarely about the indicators and the whatnot. They are all using data you see on the screen anyway. It's about managing potential losses and staying alive for as long as possible trying to earn something one trade at a time.

[@markm.2011]

Great stuff. Thanks.

[@nylemcquitty]

Very good quality vid, nailed it

[@ghjodeiri8889]

Hi So many thanks for your very useful information