{"id":54838,"date":"2021-04-19T09:44:51","date_gmt":"2021-04-19T13:44:51","guid":{"rendered":"https:\/\/www.t3live.com\/blog\/?p=54838"},"modified":"2021-04-19T09:44:51","modified_gmt":"2021-04-19T13:44:51","slug":"sami-abusaad-two-trading-mistakes","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2021\/04\/19\/sami-abusaad-two-trading-mistakes\/","title":{"rendered":"Two Trading Mistakes That are Holding You Back"},"content":{"rendered":"

So you think you\u2019re doing everything right but STILL can\u2019t boost your P&L?\u00a0\u00a0<\/span><\/p>\n

It doesn\u2019t matter how well you read charts, understand market trends, or how many newsletters you read, you\u2019ll never be successful if you keep making these two mistakes.<\/span><\/p>\n

When I started trading, I had to learn these things slowly, the hard way. Now I\u2019m sharing them with you so YOU don\u2019t have to.\u00a0\u00a0<\/span><\/p>\n

You make choices based on what you think <\/b>should happen<\/i><\/b><\/h3>\n

In 2007, I quit my job and started trading full-time. That year, the market tanked and continued to be bearish for almost two years (this is probably the reason I like to short rather than play long).<\/span><\/p>\n

To me, Radio Shack was the most obvious stock to short. I thought it was outdated and overpriced. For proof, I needed only look at my local Radio Shack, which was<\/span> always<\/span><\/i> empty.\u00a0 I thought this would be easy money.\u00a0\u00a0<\/span><\/p>\n

The market didn\u2019t agree with me:<\/span><\/p>\n

\"\"<\/p>\n

\"\"<\/p>\n

No matter how bullish the stock looked, I thought it <\/span>had to go down.<\/span><\/i><\/p>\n

Eventually, in January 2014, the stock did turn bearish:<\/span><\/p>\n

\"\"<\/p>\n

I went short at 80 cents, thinking the stock <\/span>had to<\/span><\/i> go to zero. Then — just a few weeks later — I saw the stock triple off the lows and I had to cover my position.<\/span><\/p>\n

My preconceived beliefs about what<\/b> should<\/i><\/b> happen COST ME MONEY<\/b><\/p>\n

You could be the smartest person in the world, but if you come to trading with preconceived ideas about what should and shouldn\u2019t happen, you will lose your shirt.\u00a0\u00a0<\/span><\/p>\n

This is especially true if you\u2019re like me, coming to trading from a successful career in finance and thinking you understand market trends.<\/span><\/p>\n

Look at all the people who got burned over the years shorting Tesla because the company was losing a million dollars per car. They thought there was no way Tesla could make it. Now, they\u2019re the fifth largest company in the US.<\/span><\/p>\n

The choices you make in the market should be based on what the market is telling you, <\/span>regardless of your internal monologue<\/span><\/i>.\u00a0\u00a0<\/span><\/p>\n

To become a better trader, do away with notions of what <\/b>should <\/i><\/b>or <\/b>shouldn\u2019t <\/i><\/b>happen.<\/b><\/p>\n

 <\/p>\n

You don\u2019t understand your personality<\/b><\/h3>\n

Not Everyone should take the Same Strategies!<\/b><\/p>\n

Too many new traders think that, to be successful, they just need to understand chart patterns.\u00a0\u00a0<\/span><\/p>\n

Chart patterns are a dime a dozen. You can Google them for free.\u00a0\u00a0<\/span><\/p>\n

Here are sixteen:<\/span><\/p>\n

\"\"<\/p>\n

Your goal shouldn\u2019t be to <\/span>recognize<\/span><\/i> these different patterns.<\/span><\/p>\n

Your goal should be to recognize which of those patterns work best <\/span>with your personality<\/span><\/i>.<\/span><\/p>\n

I talk about gaps, climactics, breakouts, pullbacks. These strategies make the most sense for me and my personality.\u00a0\u00a0<\/span><\/p>\n

You need to discover which work best for you.<\/span><\/p>\n

\u201cIn trading, as in archery, if there is effort, force, straining, struggling, or trying, it is wrong.\u201d <\/span><\/i>– Jack D. Schwager, Market Wizards<\/span><\/p>\n

Jack Schwager started as a struggling trader who could never get his account above $100,000.\u00a0 So, he decided to interview the world\u2019s best traders, assuming they all traded the same way. He came to realize that no two of them traded alike, but they all traded <\/span>in line with their own personality<\/span><\/i>.<\/span><\/p>\n

The best traders in history play to their strengths.<\/i><\/b><\/p>\n

Learn what kind of trading YOU like, what kind of trading YOU are good at. Do you like to day trade or swing trade? Trade with the trend or counter-trend? Do you like to scalp or hold all day?\u00a0<\/span><\/p>\n

It took me a long time to find out which strategies best suited me. Once I did, I never deviated from it.<\/span><\/p>\n

You have to find a way of trading that suits you.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

So you think you\u2019re doing everything right but STILL can\u2019t boost your P&L?\u00a0\u00a0 It doesn\u2019t matter how well you read charts, understand market trends, or how many newsletters you read, you\u2019ll never be successful if you keep making these two mistakes. When I started trading, I had to learn these things slowly, the hard way. Now I\u2019m sharing them with you so YOU don\u2019t have to.\u00a0\u00a0 You make choices based on what you think should happen In 2007, I quit my job and started trading full-time. That year, the market tanked and continued to be bearish for almost two years (this is probably the reason I like to short rather than play long). To me, Radio Shack was the most obvious stock to short. I thought it was outdated and overpriced. For proof, I needed only look at my local Radio Shack, which was always empty.\u00a0 I thought this would be easy money.\u00a0\u00a0 The market didn\u2019t agree with me: No matter how bullish the stock looked, I thought it had to go down. Eventually, in January 2014, the stock did turn bearish: I went short at 80 cents, thinking the stock had to go to zero. Then — just a few weeks later — I saw the stock triple off the lows and I had to cover my position. My preconceived beliefs about what should happen COST ME MONEY You could be the smartest person in the world, but if you come to trading with preconceived ideas about what should and shouldn\u2019t happen, you will lose your shirt.\u00a0\u00a0 This is especially true if you\u2019re like me, coming to trading from a successful career in finance and thinking you understand market trends. Look at all the people who got burned over the years shorting Tesla because the company was losing a million dollars per car. They thought there was no way Tesla could make it. Now, they\u2019re the fifth largest company in the US. The choices you make in the market should be based on what the market is telling you, regardless of your internal monologue.\u00a0\u00a0 To become a better trader, do away with notions of what should or shouldn\u2019t happen.   You don\u2019t understand your personality Not Everyone should take the Same Strategies! Too many new traders think that, to be successful, they just need to understand chart patterns.\u00a0\u00a0 Chart patterns are a dime a dozen. You can Google them for free.\u00a0\u00a0 Here are sixteen: Your goal shouldn\u2019t be to recognize these different patterns. Your goal should be to recognize which of those patterns work best with your personality. I talk about gaps, climactics, breakouts, pullbacks. These strategies make the most sense for me and my personality.\u00a0\u00a0 You need to discover which work best for you. \u201cIn trading, as in archery, if there is effort, force, straining, struggling, or trying, it is wrong.\u201d – Jack D. Schwager, Market Wizards Jack Schwager started as a struggling trader who could never get his account above $100,000.\u00a0 So, he decided to interview the world\u2019s best traders, assuming they all traded the same way. He came to realize that no two of them traded alike, but they all traded in line with their own personality. The best traders in history play to their strengths. Learn what kind of trading YOU like, what kind of trading YOU are good at. Do you like to day trade or swing trade? Trade with the trend or counter-trend? Do you like to scalp or hold all day?\u00a0 It took me a long time to find out which strategies best suited me. Once I did, I never deviated from it. You have to find a way of trading that suits you.<\/p>\n","protected":false},"author":21,"featured_media":39779,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[644],"tags":[],"class_list":["post-54838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sami-abusaad"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/54838","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=54838"}],"version-history":[{"count":4,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/54838\/revisions"}],"predecessor-version":[{"id":54846,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/54838\/revisions\/54846"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/39779"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=54838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=54838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=54838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}