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Top Tips for New Users

Views 22KNov 23, 2023

Don't make these 3 trading mistakes

Trading is 90% planning 10% holding on for dear life. In this meme-stonk world, even the best of us have made these mistakes:

1.     Not having a plan: The #1 mistake most traders make is not having a plan or not following one.

Try this instead: Avoid FOMO by setting up a paper trading account to simulate buying and selling without risking real money.

2.     Overtrading or revenge trading: You make a few good trades, have a decent P&L, and instead of calling it a day...you continue trading. Before you know it, your P&L is in the red; you’re getting emotional and making revenge trades (i.e., forcing trades after a big loss).

Try this instead: Follow your stop-loss plan, step away from your trading to regain control of your emotions, and, if necessary, reassess your trading plan.

3.     Scaling up too fast: Your P&L is up $200 a day, and you get cocky and decide to add a zero to the end of that position. The problem with scaling up positions too fast is that it involves a lot more risk and stress that we're ill-equipped to handle.

Try this instead: Stick to the original plan. Put aside a certain amount of money to trade each month, increase it incrementally over time to allow yourself to prepare for proportionally bigger losses, and minimize emotional trading.

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeline for any particular purpose of the above content.

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In Canada, order-execution only services available through the moomoo app are provided by Moomoo Financial Canada Inc., regulated by the Canadian Investment Regulatory Organization (CIRO).

In Malaysia, investment products and services available through the moomoo app are offered through Futu Malaysia Sdn. Bhd. ("Moomoo MY")regulated by the Securities Commission of Malaysia (SC). Futu Malaysia Sdn. Bhd. is a Capital Markets Services Licence (License No. eCMSL/A0397/2024) holder. This advertisement has not been reviewed by the SC.

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