The Dangers of Feeling the Trade Instead of Thinking the Trade
While there's nothing wrong with enjoying some beginner's luck as a trader, it's important not to have it turn into a rookie mistake, so Yael Warman of Leverate highlights the most common errors that novice traders tend to make and suggests several ways on how to avoid them.
New traders typically go into the market full of confidence and optimism. If their first few trades go well, they start to believe trading is easy, that they are cut out for this, and they are well on their proverbial road to riches. They forget that trading is a demanding occupation, one which should be treated as a professional endeavor; and thus, become complacent and begin taking excessive risk.
There is nothing wrong with enjoying some beginner's luck, but if you want to avoid your beginner's luck turning into rookie mistakes and rather turn it into constant and consistent profits, take into consideration the newbie trader's most common mistakes and try to avoid them.
Do not get overconfident. Don't think that because you made a few good trades when you got started, you were born with a gift. Good traders recognize that trading is not easy. It requires discipline and learning and it goes well beyond buying low and selling high. Celebrate your profits, there is nothing wrong with being happy about making some money, but don't have high expectations during your first year.