1. Trading without a plan
Entering positions based on impulse rather than predefined criteria makes it difficult to evaluate what is and isn't working.
2. Ignoring position sizing
Risking too much on a single trade can turn a normal losing streak into a serious account setback. Position sizing should be defined before entry, not adjusted emotionally afterward.
3. Overtrading
Taking excessive trades — often out of boredom or a desire to recover recent losses — increases transaction costs and the chance of low-quality setups.
4. Moving stop-loss levels
Adjusting a stop-loss further away after a trade moves against you undermines the risk management that was defined at entry.
5. Neglecting a trading journal
Without a record of past trades and the reasoning behind them, it is difficult to identify recurring mistakes or refine a strategy over time.
