MISTAKES THAT DESTROY INVESTOR RETURNS
1. OVERTRADING The financial media promotes overtrading. Because if you’re not trading you’re not trying, right? Wrong. They create exciting stories about where markets will move and why. For many investors, the desire to play outweighs the desire to win.They rather medicate their boredom by making trades and hopping on the latest hot trend. The best traders are much less active than you’ve been led to believe.They aim to profit by riding long term trends that play out over months and years, not minutes and hours.Trading on such short time frames gets you nowhere. THE BEST TRADERS: • On average, trade each market only 1-3 times per year • Do not make predictions, but follow trends • Do not let short-term volatility shake them out of their positions • Do not feel the need to trade every day, every week or month; only when they see opportunity 2. GOING AGAINST THE TREND We all need a trend to make money. If we buy at price A, then we must sell at a highe...