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So let’s talk about the five biggest trading mistakes that cause traders to lose money. And one of them is the account killer that I’m saving for last.
When you are trading, you need to have a trading strategy. You already know this, this is nothing new.
The 3 Key Elements To Every Trading Strategy
There are three key elements to every single trading strategy.
What to trade
First of all, a trading strategy tells you what to trade, right?
I mean, what stock or what options should you trade? What expiration? What strike price? So this is very important.
And as you know, I’m using my software PowerX Optimizer to find the best stocks and options to trade.
When to enter
Number two, a trading strategy, whatever trading strategy it is, has to tell you exactly when to enter.
When exactly should you buy or sell an instrument? Whether it is a stock or an option, it doesn’t really matter.
When to exit
Now, element number three is when to exit. Super important here and when we talk about exiting, there’s two ways to exit, right?
So we can either exit with a profit and if this happens, then yay, this is good, right? Or losses are part of our business as a trader.
