Common trader mistakes

These are some point’s I have learned and also heard from experts.

1. Having no plan or edge over the market. You need to have a system that has a positive outlook and it’s repeating.
2. Thinking it’s about the ‘one’ trade. Thinking about one trade is a warning that you are risking too much, because no one trade should risk your existence. And it’s impossible to find systems that are right always. You just need to be right more times than wrong. The result is the outcome of many trades over given period(month/year)
3. Wrong position sizing. Risking too much or too little for individual trade. You should calculate the risk for your account and make positions that don’t risk your existence, but they still need to be big enough to make a positive impact too.
4. Style drift. Beginner traders style drift, they may take a day trade, but after successful start they want to extend it and drift to swing, or take wait for swing for weeks, and then just take profits within the same day. Usually problem is that they don’t have a written system/verified edge and mental issues make them change the style. You can have multiple styles, but decide the style you are using before making the trade and write it down.
5. Not understanding stop loss usage and it’s effect to accuracy. Cutting losses short is very important, but using stop loss makes your accuracy lower. It’s not possible to use very small stop loss, because it’s going to hit always because marked movement. You have to limit big mistakes by selling losers, but if trade is solid, company has not changed and your entry is good. You need to give it room to breath a little bit.
6. Not having daily / weekly stop loss. Most expert traders have these. They limit the death spiral and revenge trading, where trader start to win back the losses in aggressive manner. Usually just generating more losses.
7. Not keeping Records and statistics. To improve your skill, you need to have records. Without these it’s very hard to even verify you have working edge over the marked. And what trades should be eliminated to improve the returns. Google docs spreadsheet is a good way, enter stock name, entry price, exit price, stop loss level of method, profit/loss, used method(important if many systems in use, you need to compare your day traders to your swing trades), reason for entry, reason for exit, and lastly feelings(to understand if the issue was a mental state).
8. After loosing, most people are too fast to take small profits on winners, Good idea is to use rules, in swing trades you can use days(don’t sell before 6 days). Or sell half of the position to satisfy the greed and let the other half room to run, just raise the stop loss slowly. <-common expert trader method.
9. Unrealistic market expectations, market doesn't understand your needs, you are trading against experienced professional traders, and winning consistently is very hard even for experts that work full time. Fighting for profit in that market is very hard. getting away consistently even with small profits is a real skill.
10. Not having written down rules, playbook. You need written down rules that you must obey while trading. This limits the mental issues while under stress. And you need playbook, this is trade methods, with rules, what to look for, how to take it, how to size the position, how to manage possible loss, when to exit if it goes south, or if it wins, and even if it's not going anywhere. And after testing these methods you can fine tune the method, improve it.
11. spending time while trading, you don't need to take trades, you don't have to have positions. If you don't see good trades, don't take any, Most likely you can occasionally win but without real focus you are just standings still and causing commission fees.
12. Following other people trades, This is beginner mistake, find your own setups, and know what makes your edge.
13. Trading unknown instruments, You have to know what you are trading, in most styles you need to know the stock individually, how many times it's generating certain trade in a year, what are ways to find out the position.

Some of these are my own findings and some these are taken from various sources, one of the best resource is 'chat with traders' youtube channel. Check it out!

Thunderace flipped clip ones


Trying to improve comfort I first tried higher clip-on bars, but the lighter weight caused numb fingers as Thunderace has vibrations through the bars. So I wanted the stock heavy clip ones, but little higher. So I flipped the handlebars and also moved left to right and right to left. This gives higher driving position with stock handlebars.


Thunderace 2015


Thunderace spring ride. And it works OK. Leaking carbs are solved with rebuild kits and it has new front tire. Pirelli diablo Rosso 2.  Exup is still missing, so little hesitant at 3500 area. New inch higher clip-on handlebars made it quite comfortable, but they are but shaky as the bars are so light they don’t dampen the vibration like the originals. I may need heavier bar ends. JP

How to use e-mail at work

​Many companies have noticed that using e-mail is inefficient. Main problems and solutions with mail are:

If the data would be in the right place, you could delete all your mails and history today and continue work without any major issues. If you cannot do it, you have started to use mail as information storage.

1. It multiplies work. When person A sends a message for 10-1000 people and that mail is containing something that needs to be saved for future usage and in many cases saved to different folder. Every message is then needing activity from the recipient and also consuming space, as every mail is copied.

-If you are noticing that you need to organize your mails, you are probably receiving information through mail that should not be sent to you by mail. The mail is not the final resting place of data, it should be stored to some other place. Mail should be used only to notify that such data exists. And in many cases it becomes unnecessary even to send the mails if such places exits.

-You can influence the amount other people need to organize mail, by not sending guides or anything that needs to be saved for future usage. Don’t send guides to 10-100 people. Write the guide and save it to Forum or some common place where guides should be. Then you could inform your group that you have writen that guide and where it is. This way they don’t have to save the mail. Also the guide can be updated. If the mail sent guide is updated, you need to send it again, and every participant need to update their saved version of your guide. If your group receives new employee, they don’t have the mail history, They are missing all the guides and mails! So it’s easy to understand that any information that is distributed through mail should not be stored in the mail. It’s old and it could have changed since. Only way to have up to date information is to have common places where the information is stored.

If someone in your group or section anyway sends guide by mail. Do NOT save the mail!, store the guide/information to some server or common place or write article to wiki and send a response that you have created a place for this data and here it is.

2. People that are not in the mail distribution have no way to follow it or find the solution afterwards. If the discussion would have happened in a Forum, the information and solution could be found with a search years from now. This is easily noticeable at the internet. If you buy a motorcycle and you notice some issue, you go to the internet and search for issue you are having. You quickly find some information and probably the solution for it. You usually find it from some forum or blog. What would have happened if that discussion would have happened in closed loops, like small mail distribution? You would not have those mails, you would not have any way to know that the discussion has happened, you would have no way to know even who has dealt with such issue. This is the way it happens inside the company. Somebody has to know who knows the solution. somebody has to have the mails saved and organized. New employee has no quick way to find information, because it’s inside the mail system and not stored properly.

3. Don’t answer to big mail distributions unless you have something to contribute.

“this has to be solved asap!” is not a contribution. Not if you are sending it to the whole distribution. If you are working as a manager that needs to focus the action, you can send it to the one person that needs the push.

4. Follow the mails you are sending and receiving and think that should they be sent by mail in the first place.

5. Create a history, with mail everyone has their own history, some people save mails and some don’t, everyone has their own history, some have organized history, and some have cluttered history. With common places to save the information and by using forums, everyone has the same history data. And also new employees can access this history data.

6. When Forums and common places for work data are established, it is much easier to substitute persons during holidays or sick leaves as the data is open.

7. Good practice is also not to use the work mail to any other activity. Create / mail for your personal ‘business’ and mailing your relatives. Also create and use it to register to all the internet services, this way if the mail address is leaked to junk email providers, you don’t get your official mails cluttered with junk and it provides better anominity.

8. Mail is a great tool for sharing information, but it should be just that. You should not store information in it. You should be able to just let the mails flow the past without deleting them. It’s possible even to set up auto deletion, that delete all the mails that are older then 1 month and you should be fine if the information is stored correctly. (Not stored in the mail, store it somewhere others can see it too).

Br James Parus