“Trading is the true crucible of capitalism,” says Matt Choi. “It’s an excellent way to ensure your financial future—but only if it’s done correctly, with the proper mindset. In my decades as a trader and a professional trading consultant, I’ve seen many a starry-eyed but ill-informed optimist lose their nest eggs on the markets because they didn’t employ the proper techniques.”
The founder, proprietor, and driving force behind Toronto, Ontario’s Certus Trading is a blunt and plainspoken man, always ready to tell you exactly what he thinks about any given situation without holding anything back. In many ways, this frank truthfulness is what distinguishes him from the pack when it comes to training traders, and what has elevated Certus Trading to become one of the most respected trading education platforms in the industry.
“Understanding the risks and having a solid strategy are non-negotiables,” he continues. “Most traders fail because they act on emotions rather than logic, and they don’t take the time to properly educate themselves before diving in.”
Matt Choi obtained his MBA from McMaster University in Hamilton, Ontario in 2000, whereupon he bought a struggling local car dealership. But even as he turned the fortunes of the fledgling Hyundai dealer around and returned it to profitability, he knew he was always meant to run his own financial business.
“While I managed the dealership, I traded on the side, building up my portfolio and considering my next move,” says Choi, a Chartered Market Technician. “One day it dawned on me: the most valuable thing I possess is my trading knowledge. I could share that knowledge with the world.”
And share it he did, founding Certus Trading in 2011. The company quickly took off, accepting amateur traders and rewiring their minds with the disciplined and systemic principles of trading Matt had so assiduously compiled through his formal education, his years of successful dealings on the exchanges, and his mentorship with the late George Fontanills, a renowned options trader and educator highly regarded in both academic and financial circles.
So, what sort of information does Matt Choi impart to his pupils?
“Well, to get the full breadth, you’ll have to sign up with Certus Trading and study our online training modules closely. But what I can tell you now are the three biggest mistakes I see traders make all the time.”
Mistake 1: Trading Based on Emotion
“One of the biggest mistakes traders make is letting their emotions guide their investment choices,” Choi explains. “When traders act on fear or greed, they’re likely to make impulsive choices that can lead to unforced errors and significant losses.” According to Choi, a trader’s emotions can cloud judgment and lead to poor decision-making. “To avoid this common trap,” he advises, “it’s crucial to develop and stick to a well-thought-out trading plan. This plan should include set entry and exit points and be based on thorough research rather than knee-jerk reactions.”
Mistake 2: Overlooking Risk Management
“Another major error is failing to manage risk properly,” Choi notes. “Many traders enter the markets without setting clear limits on how much they’re willing to lose on any single trade.” Choi emphasizes that neglecting risk management can lead to substantial losses. He stresses the importance of having rules in place to mitigate exposure and avoid this particular pitfall. “To steer clear of this mistake,” he advises, “always establish risk management rules. This includes setting stop-loss orders and only risking a small percentage of your trading capital on each individual trade. Such a strategy will help protect your position and ensure that one bad trade won’t wipe you out.”
Mistake 3: Ignoring the Importance of Market Research
“Many traders dive into the market without doing their homework,” says Choi. “I’ve witnessed trained professionals jump head-first into trades based on hunches or tips from others, rather than on solid research. Needless to say, many of these trades didn’t end well.”
Matt Choi explains that thorough market research is crucial for making sound decisions, without exception. He advises all traders to stay updated on market trends, economic news, and the performance of each company they’re interested in to better predict market movements and avoid costly errors.
“Above all else, don’t buy an asset just because someone has a hot tip,” stresses Choi. “If you think that the tip has merit, by all means, research it, but please don’t click the ‘buy’ or ‘sell’ button without digging around for as much information as you can find.”
By avoiding these three common pitfalls, you can transform your trading strategy and remove some of the most common self-inflicted blunders from the equation. Or, as Matt Choi puts it:
“Successful trading is more than just luck—it’s about strategy, preparation, and emotional control.”
