The 2020 market was one for the records, and the madness is continuing in 2021. But this insane market has taught a lot of traders some bad trading habits.
In the past year, we’ve seen all-time highs in the major indices, hot IPOs, hot sectors, and huge volume. It seems like you could close your eyes, point to a chart, and pick a winning stock …
And that’s giving new traders some wrong ideas about how the market works.
Tune in to find out what bad trading habits our hosts, Kim Ann Curtin, Tim Bohen, and Stephen Johnson think you need to ditch in 2021. And stay tuned until the end to hear the lessons they think you need to learn to prepare to trade in any market.
Why This Market’s Teaching Bad Trading Habits
We all know 2020 was a crazy year in the markets. And it probably won’t slow down anytime soon. But we’ll have more on our hosts’ predictions on how long this can last later…
A lot of traders are making money on the long side in this market. That’s one of the bad trading habits traders are learning — they think stocks only go up.
But all penny stocks die eventually … Or do they?
Stephen admits there’s money to make on both sides, but it’s tougher on the short side with everything going higher and higher.
He thinks new traders should prepare to be humbled. And Tim agrees, “Trading isn’t easy. Nothing about it is easy.”
More and more people are comparing this market to the dot-com boom, and the term ‘market bubble’ pops up almost daily…
Should you be worried?
Tim warns new traders trying to learn in this market on their own to make sure they’re studying history because it often repeats.
Is Kim Worried About Developing Bad Trading Habits?
Stephen thinks it’s a great time for Kim to get into the market as a long trader. He says, “It’s a good time to learn bad habits.”
That’s exactly what she’s afraid of. She thinks this market is too good to be true.
2020 was a great year to be a trader but one of the worst times for new traders to try to learn — especially on their own.
Too many aren’t learning the right lessons. Some traders are buying stocks and doubling and tripling their accounts. That makes them think they’ve got it all figured out. Too many can believe they have a natural gift for the markets, but they don’t necessarily have a risk management strategy.
Whether you’re going long or short, Stephen says you have to always keep losses small.
The crazy runners in this market have our hosts asking themselves again, how long can this market last?
Tune in to hear their opinions and why Tim says “The market is like heroin.”
The Big Question About Bad Trading Habits
So what are the good trading habits to have and what are the bad trading habits traders would be wise to ditch?
Some habits might be good for now, but they won’t work in other types of markets.
Listen in to hear our hosts break it all down.
Plus, hear the best advice Stephen’s ever received from Tim. He repeats it to himself every day before he takes a position.
Stephen thinks too many new traders aren’t trading with a plan. They’re trading based on one indicator — whatever looks good.
And Tim has a long list of mistakes he thinks new traders are making in this market. He shares his tips on what you can do to address and change them.
Plus, tune in to find out what he thinks is the number one bad habit traders are making in this market.
As for having a risk management strategy, Stephen says, you can be wrong but you can’t stay wrong.
Too many traders are getting away with sloppy executions. Some of them aren’t even looking at daily charts. Listen in for what he says about balancing losing and winning trades to stay in the game.
What Are Your Bad Trading Habits?
Has this market given you some bad trading habits? Let us know in the comments…
Remember: if we select your question or comment as an on-air topic, you could win a SteadyTrade mystery gift box. Leave a comment below or on YouTube!
Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders.
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Meet Our Hosts
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Kim Ann Curtin