So you're, a few weeks into your day, trading career and you've, probably watched your day trading account going through a violent roller coaster ride. Rest assured, i was in the same shoes as you when i first started and let me tell you my roller coaster: ride went straight down without a bounce like a penny stock pump and dump yes, it was definitely a struggle in my first year as a complete Beginner, now, seven years later, as a full-time day trader, i can finally reflect on all the mistakes i've made in the book in this video we'll be talking about the three deadly trading mistakes that beginners make, especially in this current market environment. So if that sounds good to you - and you want to stick around for the bad jokes, make sure to hit the like button and subscribe trading mistake number one. Believing stocks can only go up or how we call it in the recent months to the moon.

I think this is really a phenomenon we've been seeing in late 2020 and early 2021. In fact, i think all of this started in the march of 2020. It was in the middle of pandemic, investors were seldom stocks, and the entire market went down about 30 percent. Then comes the biggest pump we've ever seen in the stock market.

No, i'm not talking about the stock cei! I'm talking about the fed chairman, jerome powell's non-stop money printer with all this new money supply in the form of stimulus checks in the u.s, and we have similar things called serb in canada, everyone and their mother and dad started throwing money into the stock market. We saw gamestop going from double digits to 500, followed by amc from single digits to 70 dollars, and we see the same surge in prices in other asset classes such as dogecoin, shiba, inu and, of course, the granddaddy of all the things flying to the moon. Bitcoin. Seeing all these insane gains naturally created a lot of fomo in the market.

In addition, you have a lot of media coverage hyping up all these moves and with more publicity, drawing even more retail traders and investors to the market. If you are a new investor or trader and only started following the market in 2021, you likely don't know what a pullback in prices really mean sure the s p 500, recently dipped in september and october of this year, but come on on a weekly chart. That was nothing you can barely even see any red. Do you see it? Do you see it? No, yes, don't get me wrong.

I think it's great that so many traders and investors are making money buying stocks on the way up, but the current market condition paints a false narrative that stocks can only go up and they will never truly pull back or come crashing down for beginner day traders. This could be an extremely dangerous situation, because many traders will enter into trades thinking about the reward, the upside, the gucci bags, the lamborghini reigns all the, while forgetting about risk management and what to do if the trade goes against them for every single stock. That recently went to the moon, be it a gamma squeeze or hyped up, donald trump's back deals or everyone rooting for dogecoin to a dollar. The charge always looks something like this.

First, you have the huge parabolic emotional buying on the way up. This is also when you get the most hype on social media, the most media coverage - and you would hear your neighbor, who you never knew, was interested in the stock market hopping on the train, then comes the aftermath where we see the stock just slowly bleeding out. The highs after all-time highs just became lower and lower. Each time you see the volume dropping off and eventually the stock had sold off 50 percent or even more from the highs.

But, interestingly, whenever these stocks make new lows, you don't hear a lot of people talking about it anymore, because guess what the crowd had moved on to the next shiny thing: the next hot stock with the next hot crypto. That's going to the moon and many new traders and investors are left holding the bag, and let me tell you: i've been there many times myself when i was brand new, i've held so many bags. These are not the fancy bags like the gucci or the louis vuitton. These are the forever 21 the hurts or the luck and coffee if they even had bags.

So if you're, a new trader just understand that there's nothing wrong with trading these momentum stocks on the way up. You just keep riding that gravy train, but you just got ta, be smart and know when to bail the ship when the momentum dies, because what goes up must come down eventually, unless it's tesla stock, because clearly gravity does not apply to elon musk. Now, let's move on to the second mistake: beginner traders make which is not smashing the like button at the bottom of this video. Not only do you get no bs day trading content here, but you also get a free subscription to bad jokes, beat that netflix.

The second deadly mistake i see a lot of new traders make is treating trading as a get rich quick scheme. I know i know this might be an unpopular opinion, but becoming a profitable day. Trader definitely takes a little bit more than some winning text alerts and some lamborghini motivational posts on instagram, but hey. If social media can teach us that stocks only go up, it only makes sense that it also teaches us day.

Trading is easy money right wrong. I have definitely been guilty of this myself when i first started seven years ago at the time i just wanted to make some quick easy thousand dollars, so i could go to edc, vip and party throughout the weekend in style with my friends in vegas. I thought these buy and sell alerts straight to my phone was going to be the answer, my easy money making plan well. Needless to say, i pretty much lost my entire small account doing so so that's the reason.

I'm cautioning new traders against following chat room alerts, copy trading or anything like that. First of all, most of these new traders will follow, buy or sell alerts into positions without knowing the thoughts process or the thesis behind why they should do so or how to manage. The positions if the trade goes against them. This creates followers, also known as sheep, who blindly buys in without any plan and guess what, when a stock goes against them, the panic and the market order out for a huge loss.

There's a saying that goes. Something like failing to plan is planning to fail. Sure you could be lucky and make money from these alerts once a while, but in the long run being a follower will drain your account, especially if you are in these low float, penny stock chat rooms with thousands of followers. These are what we call chat room pumps, i'm very ashamed to say that in my first year in trading i tried out so many different penny stock chat rooms and i've seen instances like this first hand, but looking back now, i think i deserved it.

I deserved to blow up my small trading account because i wanted that fast cash without the work i bought into the dream that i could make millions just following what other people are buying and selling and making that easy cash. But rest assured i still went to edc. Instead of vip tickets, i paid for the general ticket and i used the disgusting porta potties and instead of staying in the fancy president's suite, i was on the floor good times. The third mistake many new traders make is always jumping left or right.

Looking for the secret strategy that 99 win rate strategy, they can follow with very little losses. I see so many new traders trying all sorts of strategies at the same time they go from a to, b to day to c tomorrow, the moment they lose some money in one they decided. Oh it's a strategy, that's not working! I should go find the next one on youtube or tick. Tock, i'm just going to break it to you here.

Trading strategies of all styles require risk and, of course, risk management. You could have a 90 win rate strategy, but if you don't follow stops that 10 percent of the time, you could still blow up your account and it's the same thing. The other way around, you could have a 40 win rate strategy, but if all of your losers are kept very small or on starter size, you can still become profitable. That's the reason i always preach about risk management and taking calculated risks for your trading account.

That means having potential risk and reward planned out beforehand and only taking the share sizes that fit your account profile. There are so many trading strategies out there. There's the moving average cross, the rsi macd strategies, the buying breakouts sure all of these trading strategies could work to each their own. But it's up to you, the individual trader, to test out what works best for you and what fits your risk tolerance.

In other words, it's not the trading strategy that determines whether a new trader is successful or not. The most important part is actually risk management day trading is not easy, but it could be learned slowly if you put in the time and hard work. Let me know in the comment section below: if you made any of these mistakes in the past, i was definitely guilty of doing so. If you want to see more day trading content, please remember to drop a like and subscribe if you are interested in learning more about day trading as a complete beginner feel free to check out the humboldt trader academy on my website.

Thank you guys so much for watching. As always, i'm the humble trader and i'll see you guys next time. Thank you guys so much for watching. If you want to learn more day trading content make sure to subscribe and check out my website at humbletrader.com.