10 Trading Mistakes You're Probably Making Right Now

published on 26 January 2023

1. Trying to learn everything there is to know about every aspect of the market.

You will need to unlearn 90% of it later to make real progress. Instead, focus on the key principles that drive market movements and price action.

2. Not focusing on what works for you and what doesn’t.

Understand your risk profile, strengths, and weaknesses. Develop a method based on your real-time trials & errors.

3. Over-optimizing your trading system.

The goal is to find a system that works for you, not to find the “holy grail”. You can minimize risk and limit losses—but you can't remove them.

4. Not keeping a trading journal.

Tracking your trades is essential for analyzing your performance and improving your results. It creates a constant you can refer to and uncover hidden patterns/flaws in your performance.

5. Not having realistic expectations.

Most people expect to make a fortune overnight, which is simply not possible. Focus on developing consistency first; the rest will follow.

6. Over-trading.

Trading less often will help you become more selective with your entries and improve your win rate. Trade quality over quantity. Let trades come to you, not the other way around.

7. Underestimating what you can achieve.

It's human nature to doubt ourselves, but we are capable of much more than we think. If you want to be a great trader, you first have to believe you have it inside of you.

8. Not respecting risk.

This is the most important aspect of trading. You need to know how much you're willing to risk on each trade and have a clear exit plan. You can't make it up as you go and expect consistency.

9. Kicking yourself when you're down.

Losing trades are common. If you keep beating yourself up over them, it will only hinder your ability to make rational decisions going forward. You need to be nicer when you talk to yourself.

10. Not enjoying the process.

If you're not enjoying the journey, you're not going to make it to your destination. Trading should be exciting, not a chore. Embrace the ups and downs and learn to love the challenges.

If you can avoid these, you'll be better off in the long run.

Remember, it's not about finding the perfect system or strategy—it's about finding what works for you and building on that. So, don't be afraid to experiment and screw up. It's all part of the learning process.

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