Been trading for a few months now and already made some costly errors with position sizing and revenge trading.
What other traps should I watch out for? Looking to learn from others’ experiences before I blow more of my account.
Avoid adjusting your stops once you’ve set them. Changing them often leads to larger losses. Stick to your plan. Don’t add to losing trades thinking you can save them. This usually increases your losses. Also, limit how often you check charts. Constantly watching can lead to emotional decisions and cause you to exit good trades too early. Set your trades and check back at scheduled times.
Stick to your plan and avoid overtrading.
Overtrading kills accounts. You don’t need to trade every single day.
And quit trying to revenge trade your losses back. That’s how you blow up faster.
Biggest mistake? Trading without risk management. Decide your max loss before you enter any trade.
Don’t chase news events either. Sure, news moves prices fast, but they reverse just as quick if you don’t understand the bigger picture.
And stop using demo results to decide if you’re ready for live trading. It’s completely different when your actual money’s on the line.