Traders common Mistakes
Mistake #1: Buying earnings plays when the good news is already priced in
Some companies will put out a news release before they file their earnings with the SEC in order to boost their stocks interest. Make sure you keep up and research exactly when the first news of earning is out so you don't buy a stock that is already up on earnings.
Mistake #2: Shorting hype stocks too early and getting demolished on your short
Some traders are in such a hurry to but a short a stock they know is being promoted they buy it to soon and when the stock continues to go up they are force to cover their borrowed shares and lose a lot of money. It's called being squeezed and it's very costly if it happens to you.
Mistake #3: Not cutting losses quickly
Sometimes when I purchase a stock it doesn't go up as I wanted and I will hold on to it hoping that it will come back up. This is very costly in most cases. If I am long on the stock I will hold it for a long time hence the term being long but if it is a short play then you must learn to cut your loses quickly otherwise you end up with a portfolio full of dead stocks that are only costing you money.
Mistake #4: You think you need to be in front of a computer ALL THE TIME
A common mistake new traders make is thinking they must be in front of the computer every minute of the day. If there is nothing on your watch list and no new news don't let the gambling fever got to you. Take a break, go outside or do your shopping. It is not good to be watching stocks 24/7.
Mistake #5: You think you need an office, to dress and act professionally to be a serious trader
The tax laws in the US are very strict when it comes to being a full time trader. Watch Michael Goodes video about it. Unless you can show the IRS that you truly have a chance for huge profits trading stocks and by that I mean have the ability to buy very large positions the way Tim does, you will not be considered a full time trader and will not be able to write off your office and other expenses. Also trade comfortably. Dressing for success does not apply to stock traders. Traders are the purest form of financial experts and we make our money on our own. You don't need to impress anyone!