Trader Dale Volume Profile
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The 10 most common trading mistakes you should avoid<br />
The 10 most common trading mistakes you should<br />
avoid<br />
There are certain mistakes that many traders tend to make. I am going to write down the 10 most<br />
common so that you can avoid them. Just by avoiding these mistakes, you will become a much<br />
better trader than most of the retail traders around.<br />
#1 Using indicators<br />
I said it at the beginning of this book – indicators are quite useless. Big institutions don't care<br />
about them. Also, standard indicators work only with "price" and "time". For that reason the<br />
information indicators provide are always delayed.<br />
Novice traders need to accept the fact that there isn’t a magic combination of indicators that<br />
would make good and profitable trading system.<br />
#2 Martingale<br />
Martingale is a very risky money management<br />
system, which has its roots in casinos. The most<br />
common martingale strategy is to double your<br />
bet whenever you take a loss. So, for example,<br />
in roulette, you always bet on red. When you<br />
lose, you double your bet in the next game. If<br />
your initial bet is $10 and you lose, then the<br />
next bet is $20. If you lose again, your next bet<br />
is $40. Lose again and bet $80. Let's say that<br />
you win the 4th bet this time, so you have won net $10 (-$10 -$20 -$40 +$80 = $10).<br />
No matter how bad you are, and no matter that you don't have an edge, you will probably be<br />
winning for a while. However, sooner or later you will have a losing streak and you will lose<br />
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