David Green, Founder, Wall Street Global Trading Academy, breaks down the top mistake new traders tend to make.
Transcript:
CAROLINE WOODS: You mentioned technical analysis. You pay a lot of attention to the charts. You’ve taught risk management. What’s the number one mistake you’ve seen some of these traders make when they’re trading futures specifically?
DAVID GREEN: And it’s common to all traders. First of all, you have to have a plan right. And a lot of people with the futures accounts because it’s so cheap to get into it. They treat them like candy and they blow them up left and right. You have when you open up a futures account with APEX, you have a $2,000 maximum loss limit. OK and this is all simulated trading. So a lot of people treat these like candy and they just go through them left and right. We teach technical analysis. We teach psychology, which is one of the most important things in trading. And we have a strict set of rules. We have a stop order on every single trade that I do. So when I do get into a trade, I know what my profit target is and I know what my stop loss is. And will we trade as many trades. People ask me this all the time. David, how many trades do you do in a day. And 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. And not until then. And some days we have 7 or 8 trades, and there are days actually we sit around and do not trade, especially at summer time. Now it’s been very, very slow. Discipline is a big part of any trading, even for long term investors. It’s a very important part. So I say discipline, patience, learn some technical analysis.
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