Trading Mistakes - The One Thing That Holds Every Trader Back

Did you know that there's one thing that holds absolutely every trader on the planet back from achieving their full potential? Do you want to know what it is? Stick around.

This is really important because absolutely none of us are perfect, okay? We're all human beings and that's what holds us back. The problem is, no matter how good our method is, no matter how great the signal service that we follow is, no matter how perfect the indicator, there's one thing that will continue to happen if you're not ultra, ultra careful and aware of it, and that is making trading mistakes. Trading mistakes hold every single trader back from their full potential because none of us execute every single trade, every single action perfectly. Now that a great example from this week. And I've been trading for 20 years and I still make these sorts of mistakes. So you got to watch out for it. And the one I made this week was an absolute rookie error, okay? It was a fat finger error. I don't know if you've heard about fat finger errors, but those things in the market where you're placing an order and because your fingers are a little bit fatter than the keys on the keyboard, you end up mashing the wrong number when you're typing in the volume or the price. And so for me, it was a classic this week, right?

Seem to be having trouble. Hope you can hear me. For me, it was a classic this week, right? Because I typed in the volume and I hit a zero at the end of the number that I needed. So I ended up with a position size that was 10 times what it was supposed to be. So that's a huge risk, right? And I luckily I caught it before anything bad went wrong and I corrected the error. But here's the thing. That mistake is so easy to make, and I've been doing it for a long, long time. And I placed thousands of trades and I still made that error. So what I want you to do is have a look at your own trading and think every time you're about to take an action or not take an action in the market.

Think to yourself, what mistake could I be making here? What could be going wrong? What could I do to check to make sure this is exactly the way it should be? Now, here's the thing. I was ignoring the confirmations that popped up in my broking platform about the trade. I didn't actually read carefully the confirmation note that came up after I placed the order that tells you the size of the trade, the number of shares and so on, and the commission. If I'd have looked, I would have seen that the trade was too big and I wouldn't have made that mistake. So if it can happen to me, it can absolutely happen to anyone. Now, I'm not perfect, I'm not the best at execution, but I certainly try and I still make mistakes like this. Now here's why I hold everyone back. Because maybe not everyone has made a fat finger error or maybe not everyone has, has made big obvious mistakes. But every single system, every single indicator or signal service has a maximum theoretical profitability, right? If you back test that, that set of rules or that, that indicator, that signal, you should see exactly what you would have got in the past had you executed perfectly, exactly according to the backtest.

But in reality, we don't actually get that performance because, you know, we get slippage, we miss trades, we type in the wrong values or we get sick and we miss our trading one day or whatever it is. But that maximum theoretical performance or profitability of our system, that's our cap. And our actual performance is usually quite a bit less than that. And the difference is almost always mistakes and generally mistakes that we're not aware we're making. Now that's the big kicker, right? Because if you're making mistakes and you're not aware that you're making mistakes, how can you possibly fix them? All you do is you look at your performance and you wonder, why didn't I get the profitability I was expecting to get from my system, Right?

Here's the trick. The trick is to look at the performance, the results that you actually got, and then back test your system or your rules and look at the performance that they got theoretically. And the difference is pretty much made up of all your mistakes. Now how do you know what mistakes you made? Well, what you need is a checklist to, to go through to find all of the common trading mistakes so you can actually think about yourself and your trading and inspect yourself and decide, did I make or have I made any of these mistakes? And thankfully, I've spent a lot of time doing this and I've looked at a lot of my own trades, thousands of them. And I've coached hundreds and hundreds of other traders and seen all the mistakes they made. So I've put together a trading mistakes cheat sheet to help you do exactly this. So what I want you to do now is if you want to improve your performance, fast comment down below cheat sheet and I'll get you a copy of the trading mistakes cheat sheet so you can go through and have a look and raise your awareness about the sort of mistakes you could be making so you could be on the lookout for them. Now why is this the best way to improve your trading? Well, to start with, most trading mistakes are actually pretty quick and easy to correct. Once you're aware of them, you can put things in place, put measures in place to eliminate mistake or the problem. So once you're aware, it's much easier to fix. It's much harder to improve your trading system or find a hot new indicator that makes more money, or find some new position sizing method that improves things or diversify into a different market. All of those things take a lot more effort. But inspecting what you're already doing today, identify is there anything that I could do better? Are there any mistakes that I'm making in my day to day trading? That's easy once you've got a checklist to work through. So comment below trading mistakes cheat sheet and I'll get the cheat sheet to you so that you can go through your own trading, eliminate some mistakes and get closer to that theoretical profitability that your trading system or trading rules has. Because.

Until you improve what you're already doing, it's almost a waste of time to go and diversify and improve and find better systems and all of that, because you're still going to make the same mistakes. And the bad thing is, trading mistakes compound on each other, but it doesn't compound in your favor. Obviously it compounds against you. If you're making 2, 3, 4, 5 different trading mistakes or more, and most traders make many dozens. In fact, if you're making many, many little trading mistakes, they all compound on each other, trade after trade, day after day, week after week, taking you away from your trading dreams, holding you back. And if you can systematically eliminate some of those mistakes, and you can do that really quickly, as soon as you're aware of them, then all of a sudden your dreams are that much closer because your trades are now compounding in your favor. They're not compounding against you, the mistakes are not compounding against you. So comment Trading mistakes cheat sheet below. I'll get you the cheat sheet if you've got any questions about things think might be a mistake or mistakes that you could be making and you don't know how to fix them. Comment below. Share what? Share your questions. Share your mistakes. Let me help you out. Because eliminating or identifying and eliminating your trading mistakes is the first huge step towards increasing your trading profitability. And the great thing is it can be done super, super fast. You don't need to read hundreds of books. You don't need to spend days and days back testing. You don't need to agonize over which markets you you need to expand into. All you need to do is go down the checklist of the trading mistakes Cheat Sheet Identify all of the things that you are doing now or you have done in the past. Become aware of them and then make a note of them and be conscious of it as you're going about your daily trading so you can eliminate them and improve your results. Trading mistakes are the one thing that holds every trader on the planet back because none of us are perfect. But you can get closer to perfect by identifying and eliminating the biggest trading mistakes that you're making today. I still make them. I still work on this even after 20 years. I know this holds all of us back as traders. So Comment below. Cheat Sheet I'll get you the Trading Mistakes Cheat sheet and you can improve your trading today. My name's Adrian Reed. This is Enlightened Stock Trading. If you've got any questions, comment below. Comment Cheat Sheet to get the cheat sheet and improve your your trading today and I'll see you in the next video. Bye for now.