5 Common Trading Mistakes New Traders Must Avoid

5 Common Trading Mistakes New Traders Must Avoid

As a trader you buy and sell securities more frequently than investors. You also hold your positions for shorter periods of time. Because of this you are more likely to make mistakes that can quickly wipe out your investing capital. If you are looking to be a successful trader, here are 5 common trading mistakes you must avoid.

Mistake #1 – Holding On To A Losing Position Too Long

Successful traders know how to take a quick loss. If something is not working they quickly get out and move on to the next trade. Unsuccessful traders tend to get paralyzed if a trade goes bad. Instead of taking a quick loss they will hold on to it hoping it will rebound. This type of inaction will result in a significant loss in investment capital.

Mistake #2 – Overtrading

Trading too frequently is the fastest way to erode returns. If your goal is to turn a nice profit you should limit how often you trade in a certain period of time.

Mistake #3 – Looking At Trading As The Road To Quick Riches

Trading is one of the most demanding things you can ever do. It takes a great deal of patience, knowledge and trial and error to be successful. If you approach it as a way to “get rich quick” you will find yourself taking excessive risks that can lead to a trading disaster you can't bounce back from.

Mistake #4 – Blindly Following The Herd

This is a common mistake you see a lot of new, inexperienced traders make. When you blindly follow the herd you may find yourself making moves that can get you in a lot of hot water. While most experienced traders follow the trend, they also know how to exit trades at the right time. As a new trader you haven't gained the experience to know when to get out of a trade. So stick with what you know and avoid following the herd.

#5 – Trading Multiple Markets At The Same Time

When you trade multiple markets that means you are going from currencies to commodities to stocks, just to name a few. As a new trader your number one objective should be to master one market at a time. Once you have excelled in one market you can move on to the next. Trying to trade multiple markets at the same time will almost always end with you losing all of your investment capital.

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Calm before the storm - Calm before the storm

Calm before the storm

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Calm before the storm ?

Calm before the storm

Calm before the storm

Is the stock market really in a situation of us seeing the calm before the storm... Is this true?

U.S. stocks closed lower Tuesday, with utilities falling 1 percent, as investors analyzed strong consumer data while keeping an eye on Federal Reserve ahead of Friday's jobs report.

"After coming off of Jackson Hole, ...all the attention is now to the jobs report," said Bob Phillips, managing principal at Spectrum Management Group. "If it comes out to be a decent number, I think the market will sell off."

Economists polled by Reuters expect the U.S. economy to have added 180,000 jobs in August.

Investors continued searching for clues regarding the Fed's next move Tuesday, after Fed Vice Chairman Stanley Fischer said the U.S. job market is almost at full strength. Fischer made his remarks less than a week after telling CNBC that the August jobs report will weigh on the central bank's decision on whether to raise interest rates.

"We are officially in a rate-rising market, even thought it's only been one rate rise," said Larry Rosenthal, president at Rosenthal Wealth Management Group. "People need to go back to basics and ... have lower beta portfolios." "Keep things simple."

The S&P 500 fell 0.2 percent, with utilities leading nine sectors lower and financials the only advancer. The financials sector has risen more than 3 percent in August, leading all 10 sectors.

Looking at the chart, the S&P has not done much for WEEKS!!! But as you can tell, this does not occur that frequently. Eventually this will break either way. We can say that the month of SEPTEMBER does tend to be a Negative type of month, so just a heads up. That is a statistic if look back 50 years. A break of 2150 spx would be bearish, but as we said, the smart money is doing nothing right now!. 

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"The consumer confidence came in strong and that bodes well for the Fed to raise rates," said Peter Cardillo, chief market economist at First Standard Financial, but noted he does not expect the Fed to hike next month, rather later this year. "That shows consumer are cheerful and that spending will remain [high]."
Other data released Tuesday included the S&P CoreLogic Case-Shiller 20-City Composite index, which rose 5.1 percent year over year, versus expectations of 5.2 percent.

"These are the dog days of summer," said Bruce McCain, chief investment strategist at Key Private Bank. "It's a pretty boring time in terms of economic data and the net result is the market doesn't know what to do."
Stocks closed higher on Monday, with the S&P rising 0.52 percent, marking its 36th straight session without a 1 percent move higher or lower on a closing basis. At the close, Monday was on pace for the lowest trading volume day of the year.  -    Source : Cnbc.

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Are Bitcoins a Good Investment? - 4 Reasons They Are

Are Bitcoins a Good Investment? - 4 Reasons They Are

Since the end of 2015 the price of Bitcoin has steadily risen. As a result venture capitalists started pouring more money into the Bitcoin than they ever had before. Its really interesting because in an era when gold is not performing quite like many hoped and expected it to, Bitcoin is quickly turning into a safe haven for investments. 

If you have been on the fence about whether or not investing in Bitcoin is a good idea, here are four reasons you may want to jump on board. 

Reason #1 – There Is A Fixed Supply 

The one thing that will ensure the long term value of the Bitcoin is its fixed supply. Once 21 million Bitcoin have been released no new coins will be created. Experts expect this number to be reached by 2140. According to Chris Burniske of ARK Investment, the predictable growth of the Bitcoin and its fixed supply will make it a far more superior value than fiat currencies over the next several years. 

Reason #2 – Bitcoin Is Being Adopted For Various Practical Applications 

As Bitcoin becomes more ingrained in society, both businesses and individuals will need to own their fair share of it in order to function. As Bitcoin becomes the go to currency for transactions all over the world, demand will drive the price up which means now is the perfect time to invest in it. 

#3 – It Is The Number One Digital Currency 

While there are other digital currencies available, none can compete with the Bitcoin. At least not now or in the near future. Bitcoin has the largest market capitalization of any other digital currency. All the top digital currency wallets use Bitcoin. There are also several apps such as Abra and Circle that use Bitcoin for the sole purpose of transferring money. Bitcoins security and liquidity properties make it a very difficult digital currency to dethrone. 

#4 – Bitcoin Is Currently Being Undervalued 

When you compare Bitcoin to Gold you will see it is being undervalued. Just like gold, Bitcoin is also limited in supply and cannot be counterfeited. However, there is one thing that gives it an edge over gold and that's its utilitarian value. While gold is great for making jewelry and various other industrial production processes, when the price increases it is no longer as useful. 

Bitcoin on the other hand becomes more useful as more people will start to use it to transfer money and make financial transactions. 

Whether or not you should invest in Bitcoin will depend on your investment goals and the amount of risk you are willing to take. As with all investments, you should only invest what you can afford to lose. 


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