Mistake #7 – Shooting for the moon

Be realistic about your goals.

One of the biggest mistakes that can crop up in gold trading is getting caught up in the belief that there are unimaginable riches just waiting to be tapped. There is no promised glory land that will appear just because you want it bad enough. There is profit potential, and there is a risk of loss, but lay everything on the line searching for El Dorado and you risk disappointment as well.
Try to take smaller nibbles rather than huge bites at profit. There are plenty of traders who sat too long on the plus side of a trade, worrying that an early exit would cost them money. Find the reasonable exit that you formulated as part of your plan and stick to it. Sure, there are plenty of arguments that suggest inflation-adjusted gold could be prices in the thousands of dollars. However, if gold is headed in that direction, it will have many pit stops along the way and plenty of profit taking opportunities. Never forget the wisdom, “You can’t go broke taking a profit.”