Last Update: August 2021

≈ A recipe for disaster, by Tackle Trading. ≈

The internet is filled with wisdom. You don’t need to be a nerd or a geek to find out that there is a guide, a checklist or a Q&A for almost anything.

Almost.

The search for “How to fail in the stock market” returned zero results. That’s not fair. Failing in the stock markets is the rule. Succeeding is the exception.

With that said, let’s fill that gap with an honest attempt to answer the (negative) million-dollar question: “How to fail in the stock market?” Here’s our recipe for disaster.

Checklist on How to fail in the stock market

• Be impatient.
• Try to get rich quick.
• Be undisciplined.
• Let emotions take control of you at all times.
• Base your decision-making process on greed, fear, and hope.
• Call the Four Horsemen of the Trading Apocalypse run your business with you.
• Trade all strategies under the sun. Leave none untouched.
• Trust your skill at all times.
• Trust you forecast abilities.
• Follow hot tips and go all-in on all of them.
• Trade financial assets you don’t understand.
• Let fear dominate you.
• Don’t click any button. Just be sitting there staring at the candle formation.
• Never paper trade. Don’t bother doing that.
• Trade Forex without knowing lot sizes.
• Trade directionally without risk rules.
• Don’t have rules at all. (now that’s better)
• Buy high, sell low.
• Sell low, buy high.
• Cut the winners short and let the losers run.
• Go on vacation and leave your positions free to go wherever they want to.
• Don’t read books.
• Always overleverage. The greater the leverage, the better you will fail.
• Pray every day for the brokerage firm to give you a warm margin call.

. . .

Not the definitive recipe for disaster, but we guarantee that if you follow every step, your failure is going to be EPIC. Good luck.

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Chart of the Day: Greed = Buy/ Fear = Sell; Rinse and Repeat

A napkin sketch is worth a thousand words. The sketch above was drawn by Carl Richards for his book “The Behaviour Gap”. No further explanations needed. (source: behaviorgap.com)

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Video of the day: What is Initial Public Offering (IPO)

An Initial Public Offering—known as IPO— is the process by which a private company goes public by selling its stock shares to the general public for the very first time.

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