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Of course when you start any new activity you are going to make mistakes. It is no different with learning to trade. There are many common mistakes that traders will make as they start to learn about how to trade. The best way to approach the task of learning to trade is to understand that it is natural to make mistakes and be ready to fix those as you recognise them in yourself.

I recently interviewed a number of trading coaches and mentors and asked them what are the common mistakes they see when coaching new traders. These professional traders also spend time coaching private clients, so they regularly see traders progress from novices to making money out of the markets. It is only those that continue learning and improving their performance that get to the point of making money.

Lets go through the most typical mistakes that the trading coach and mentors find. One of the most frequently made mistakes that a trading coach sees is that the new trader does not have a very good trading plan, or if they do have it, it isn't finished. A trading plan is your game plan and tells you what you should do in different situations. It saves you from trying to work out the best course of action when you are under pressure.

Another mistake that people new to trading make is being impatient. When you start trading you cannot wait to start and trade. Sometimes people become impatient and will force a trade that isn't really there. The people that force trades will take a trade that almost meets the criteria instead of waiting for the ideal setup. One of the lessons to learn is that you must have patience and wait for the setups.

Many people also have problems with stops. That is setting the stops too close to the close to the price that they bought. It is the fear factor. They are worried about losing their money, and to protect themselves they set the stop too tight. They have not yet learnt that you must allow a trade to develop and setting a very tight stop will just get you out of a trade before it has had a chance to develop.. A trading coach can be a great way to speed up your learning of how to trade.

Tags: trading, trading advice, trading coach, trading mentor