Week 4 PRO | 3 Trading Mistakes That Blow Up Accounts (and How to Avoid Them)
Learn the 3 mistakes most traders make before blowing up their account. You'll also learn to protect your trades, prevent blow-ups, and make your monthly earnings consistent.
Hey Pro subscribers,
Monday, you learned about managing your risk as a long-term investor, and how to avoid the 3 mistakes that destroy beginner portfolios:
Overexposure: Investing too much money in a single asset or industry.
Emotional Decisions: Making decisions based on feelings instead of plans.
Investing Money You Need: Investing money that has been earmarked for other responsibilities or events (rent, mortgage, vacation, etc.).
Today, you’re learning 4 mistakes that ruin trading accounts.
As a Pro subscriber, you’re learning to earn consistent monthly income from your investments, and today’s lesson is one of the most important to achieving that goal.
The truth is: the majority of traders who blow up their accounts don’t do it because they’ve made bad trades; they do it because they don’t manage risk.
Don’t believe me?
That’s exactly why you’re about to learn how to control your risk. Once you do, your performance will become much more consistent.
The Four Mistakes That Blow Up Trading Accounts
1️⃣ Trading Unhealthy Companies
The more people I teach to be successful in the stock and options market, the more I realize that new traders don’t know this: No amount of technical analysis will save you from trading horrible companies.
You can have the perfect setup, catch the perfect dip, and time your entry to perfection… but if the company is weak, you’re almost guaranteed to lose money.
That’s why I only trade from my curated list of strong companies with healthy financials, trends, and trading volume.
The quickest way to spot a potentially tradable company is to open its chart and zoom out to see the price trend across all years it has been publicly traded.
You want to trade companies with price charts like this:
Not this:
💡 Pro tip: Want my curated list of tradable companies? Comment “trade list” and I’ll share it with you.
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