Hey hey: what's up my friends, so in today's episode i wan na talk about five five trading habits that keep you poor without you realizing it don't tell anybody so habit. Number one! Is this chasing the markets or you? You open up your charts and you see the candle boom right, wow, so huge, so bullish right, it's time to to enter the trade right to capture that little bit of momentum, because i know i know the market is going higher, i'm just going to exit the Trade right quickly and then book some quick profits, so you change the market, but the moment you hit the buy button. Somehow the market is watching. You right knows that you just entered the trade and it closes as a rate bearish engulfing pattern.

The next thing you know the market starts reversing against you and you're sitting in the rate right, your account is in the rate and you're wondering what just happened right. So that's that's the thing right, don't chase the markets because usually when you chase the market, usually when you feel that this is the best time to enter the market, if not miss out the next wave of the move, that's usually the worst time to enter the Market because that's when the market is ready to make a pullback or even worse, make a full-blown reversal. So usually, when your heart right tells you raider it's time to enter it's time to buy nope, it's not a good time to buy it's better, to sit on your hands and do nothing right. So whenever you have that taut coming in sit on your hands, evaluate ask yourself: am i trading near an area of value right? Is there a logical place for me to set my stop loss? If the answer is no no no and no, then don't place the trade okay.

So that's habit. Number one number one chasing the market: bad habit, number two right fixed position size, so this happens to a lot of new traders right there. They're lazy to to to learn the math about trading. So whenever they put on the trade they just go with a fixed lot size.

One lot, that's easy! Just number one! One lot, unknowingly right! One lot equals to a hundred thousand units in fx market. So, for example, if you are having a 10 pip stop loss on euro dollar, one lot right: it's about a a stop loss of hundred dollars. So if you hit your 10 pip stop loss, that's a loss about a hundred dollars, something that probably most of you can deal with. But when you trade, let's say a higher time frame or your stop loss gets wider and you still use that same one lot.

That same fixed position, size, what's gon na happen now - is that your losses right will increase accordingly, if you, if you have a 50 pip, stop loss on the one standard trading lot on euro dollar, that's a potential loss of 500, and if you have a 200 Pip, stop loss, there's a potential loss of two thousand dollars. So here's the deal right. You can't be using fixed lot every single time when your size, when your distance of your stop loss is always you know changing right, because it depends a lot on the time frame that you're trading and you know the size of your stop loss. So you have to adjust your position size such that every time you put on put on a trade right and even if it's a loss right that loss is always consistently.

You know a fixed percent of your account, let's say one percent or two percent right. So you must use a position size that can adjust accordingly to the size of your stop loss. So i don't use a fixed position size because what's gon na happen is that whenever the size of your stop loss change, your losses is gon na change. The amount is gon na change and when the size of your losses amounts change, you're not gon na have a consistent result, because sometimes you lose small.

Sometimes you lose big. Sometimes you lose what just happened right, so you have to be consistent with your losses. Right make sure that it's always a fraction of your trading account and to accomplish that your position size must be dynamic. It has to shift all right according to the size of your stop loss, number three, no plan for exit, no trading plan.

So what do i mean by this is that you have a setup. You enter a trade, maybe it's a fundamental news, a tip, a rumor. Whatever you buy, and then you you just don't have a plan right. You just buy and hope that the price goes up right and let's say maybe the price really does go up right and then someone a friend like yours like right now say: hey, hey mike.

When do you plan to sell that position and you'll say right uh? I plan to sell when the market has caught up enough when it has given me enough profits. Well, guess what you will you won't sell when the market has moved in your favor trust me on that right. I have experienced that so many times myself. When the market goes up, you will think it will go up even higher, so you won't sell right because the profits right on your screen is so green right.

Why do you want to sell and just take a small gain right when the market could move up even higher, so you hold on to that trade? And when do you sell i'll, tell you when you sell, because i have done it so many times myself in the past, you will only sell when the market goes against you when your profits get smaller and smaller and it turns into rate, and when it's rate, You can't take it anymore, you exit the trade for a loss and that's when you will sell okay, so you my point being here, is that you must have a plan right before the moment. You enter a trade, you must know when you're gon na get out of the trade. If the market moves in your favor or even when it moves against you, if you don't have that plan, you have no business putting on that trade, because you will only sell at the worst possible moment when it's against you right selling near the lows right. Just when the market is about to rebound higher, okay, so don't make that mistake right break this habit right.

You must have a plan. Don't trade without a plan. Number four bad habit. Number four: is this adjusting your stop-loss? So you might have a plan right.

You have a stop-loss in place, but whenever the market you know uh seems to know where your stop-loss is all right man, how do you know where my stop-loss is right? So you put your stop-loss there and, as the market approaches your stop-loss right, you don't want to get stopped out. You don't want to book another loss because you don't suffer three losses in a row. So what do you do? Well, you shift your stop loss right. You let ship, let me shift it down lower right, so the market doesn't trigger my stop loss, so i can avoid getting stopped out.

Well guess what? Yes, you do avoid getting stopped out, but if the market now moves further against you, that loss is now amplified. It's even a bigger loss right than what you had planned earlier and that kind of defeat the purpose again right of of me, saying earlier right to contain your losses right, because when you adjust your stop-loss, when you shift your stop-loss against you, the loss that you Have plan ahead of time right has now increased in size. So if the market now hits your so-called new stop-loss level, your losses amplified has increased and if your losses are not constant, if your losses are not controlled right, then, what's going to happen, is it's going to make it difficult for you to be a profitable trader Because you know sometimes your losses are big. Sometimes it's small and it's hard to get consistency in your trading, okay and last one fifth, one right is this itchy fingers right one thing: action from the oh man: i want to trade the markets right now.

So let me fire up the charts. Let me look through the markets. Let me look through the timeframe and find some trading opportunity right. Let me find some excitement right.

Where is the where's the money right now all right? So so here's the thing right. If you are looking for action, if you have ichi fingers, what you're going to do is you will simply enter traits based on your emotions, based on what you are seeing at a point in time and based on how you're feeling at a point in time and What's going to happen, is that every time when you open up a chart, when you flick through the chat, the different time frames, you will be having different feelings, different emotions and your actions will be different every single time. One moment you trade breakouts one moment it's a pullback one moment is a reversal trait and what's going to happen in the grand scheme of things, is that your actions are inconsistent and when you have an inconsistent set of actions, what happens you get a inconsistent set Of results right and this again right will hurt your trading right in the long run. Okay, so be aware of all these trading habits right that actually hurts you more than you think.

So, quick recap, number one, don't chase the markets. Number two: don't use a fixed position, size number: three: don't trade without a plan! Number four! Don't keep! You know adjusting your stop loss all right further and further against you, because you don't want to take the loss and number five. You know avoid itchy fingers stop. Looking for action in the market, so if the trade is there, it's there if it isn't sit on your hands? Okay, so with that said, i wish you good luck.

Good trading! I will talk to you soon. You.