Here to discuss the top three investor and trader mistakes, is Serge’s partner from Blue Marlin Advisors, Brian Terry. When thinking about the top mistakes, both men came up with the same three. One thing these mistakes have in common is psychology and minimizing emotions. With trading being more of an art than a science, Serge has found that people with a strong academic background tend to struggle the most, as they’re more by the book. Luckily, all three of these mistakes can be fixed.
The first mistake has to do with patience. No one can expect to become a great trader overnight. It takes a commitment of time, energy, and learning from your mistakes. Resist the urge to jump in immediately, take the time to develop a plan, and make calculated decisions. Next up is risk management. It’s all about position sizing and managing what you have at risk. Once again, without a plan, every decision becomes emotional. Last, but not least, is being macro-aware. You must understand where we are in the business cycle. After all, it’s the dog that wags the tail, not the other way around.
What You’ll Learn:
- What makes a good investing game plan.
- What revenge trading is and why to avoid it.
- What it means to be macro aware.
- What two conditions move the market.
Favorite Quote:
“The more you know about the macro condition of the economy, what cycle we’re in, the better trader you’ll be.” -Brian Terry
