A lesson on two of the most common mistakes that traders make when trading the stock, futures and forex markets.
One of the most common mistakes is sticking in a trade where you know you are right in your analysis, but the market continues to move against you. As the famous economist John Maynard Keynes once said:
"The markets can remain irrational longer than you can remain solvent"
Perhaps one of the best examples of this are those who shorted the NASDAQ into the runup in 1999 and early 2000.