The biggest mistake traders make and how to avoid it

David Green, Founder, Wall Street Global Trading Academy, breaks down the top mistake new traders tend to make.

Transcript

00:00You mentioned technical analysis. You pay a lot of attention to the charts. You've taught risk management.

00:05What's the number one mistake you've seen some of these traders make when they're trading futures specifically?

00:11Yeah, and it's common to all traders. First of all, you have to have a plan, right?

00:16And a lot of people with their futures accounts, because it's so cheap to get into it, they treat them like candy.

00:22And they blow them up left and right. When you open up a futures account with Apex, you have a $2,000 maximum loss limit.

00:29And this is all simulated trading. So a lot of people treat these like candies, and they just go through them left and right.

00:36We teach technical analysis. We teach psychology, which is one of the most important things in trading.

00:42And we have a strict set of rules. We have a stop order in every single trade that I do.

00:46So when I do get into a trade, I know what my profit target is, and I know what my stop loss is.

00:51And we'll trade as many trades. People ask me this all the time, David, how many trades do you do in a day?

00:55And I will tell them, as many as set up for us technically, when our charts tell us to make a trade, we're going to make a trade.

01:02And not until then. And sometimes we have seven or eight trades, and there are days, actually, we sit around and do not trade.

01:09Especially in summertime now, it's been very, very slow.

01:12Discipline is a big part of any trading. Even for long-term investors, it's a very important part.

01:17So I say discipline, patience, learn some technical analysis.