When starting your own financial market trading business from home, you need to add an extra layer of discipline to your strategy as you’d still need to run the household while working. According to one of the top financial advisors at Jones Mutual, one of the main reasons for home-based market trading business failures can be attributed to mismanagement. With that said, let’s have a look at some of the mistakes financial market traders make when running their business from home as well as how to avoid them.
Trading without a stop loss
If you are working from home, there are a number of chores you need to complete before or after your trading day is over. Keeping that in mind, you won’t be able to sit in front of your computer the entire day to keep an eye on the financial markets. You can choose to receive mobile notifications while you’re not at your workspace but that does not stop you from losing capital. However, with a stop loss, you can put confidence in the fact that should your trade be unprofitable, you won’t lose all the capital in your trading account.
Averaging down your day trades
If you open a trade and you see the market moving against you, you might want to jump to unnecessary lengths to try and save your capital. This is called averaging down and in the long run, will cost you a pretty penny. Averaging down entails opening a trade and when … Read More . . .