If you’re new to trading or have been at it for a while but can’t seem to get ahead…
You might be falling victim to one of the most common and costly mistakes I see new traders making repeatedly.
It’s a trap that’s easy to fall into but equally simple to avoid if you know the rules of the game.
In this market environment, it’s essential to avoid this trap and use my one rule to stay safe out there.
The issue might not be what you’re trading or how you’re trading, but your approach to learning and making money in the market.
Today, I’ll help you sort it all out and give you my top tip to help you focus on higher-odds trades in this market.
The Common Trap for New Traders
I see it all the time — folks are eager to jump into trading with both feet, dreaming of big wins and instant cash.
But here’s the hard truth: if you’re new, your first job isn’t to make money.
Your job is to learn how to trade.
Think about it this way— you wouldn’t try to run a marathon without training, right? Trading is no different.
The harder you work, the more you show up, and the more time you put in, the sooner you’ll start making money.
But it’s a process, and it starts with education.
Your main job as a new trader is to learn. The money will come. But it’s the reward for patience, practice, and persistence.
Flipping the script and focusing on profits over education is a shortcut to frustration and failure.
The traders who succeed in the long run are those who take the time to learn the craft first.
Getting there starts with slowing down, focusing on the process, and making the right moves.
Right now we’re in this kind of transitional phase of the market.
AI is still a hot theme but we didn’t have a huge AI runner for a while…
Until yesterday morning when XTL Biopharmaceuticals Ltd. (NASDAQ: XTLB) had AI news and spiked 104% from the Breaking News Chat alert.
XTLB chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
So until we get a big 1,000% runner or another hot theme that brings everyone back to small caps — it’s time to be conservative.
Use the slow ‘hangover’ days as I call them to study material and hone your skills. Trade smaller, trade less, and if you do see a setup you like, use my number one rule to stay safe…
Rules: A Lifeline for New Traders
The rule I encourage all new or struggling traders to follow is the 9:45 rule.
This rule keeps you from jumping into the market too early and making impulsive decisions.
The market opens at 9:30 am and those first 15 minutes can be wild. Prices jump all over the place as everyone tries to get a piece of the action. It’s tempting to dive in, but as a new trader, it’s the last thing you should do…
Wait until 9:45 am or later to spot an entry. It gives the market time to settle down and you can get a clearer picture of where things are heading.
I didn’t make this rule to make you miss out on trades — it’s designed to help you play smart.
And while you’re always free to make your own choices, I can’t stress enough how valuable this rule can be in helping you avoid early mistakes.
Focus on learning, respect the 9:45 rule, and treat trading like the skill it is.
The slow days are when you can learn valuable lessons. And when there’s a hot theme and a killer trade — that’s when you execute.
The journey to becoming a successful trader is worth it. Let me help you every step of the way….
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Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade