My top 3 ways to get into trouble when trading

I have been there so many times, I can't even tell.

I have read trading is an endeavor that involves life-long learning. Markets constantly change and so do we if we are to survive. So we will never be perfect as traders. Or eliminate trouble, or losses for that matter. But these are my top 3 stupidities to get into trouble:

1) Trade without strategy
We are in this game not for a one-time lottery win, but to produce repeatable winners and profits. That will only ever be possible with a repeatable strategy. So don't trade on feelings, or looks, or news, or tips, or whatever. Trade as yours strategy commands!

2) FOMO
FOMO is the fear of missing out. FOMO is one of my weaknesses. Especially after over-extended moves trying to catch turnarounds I will into trouble jumping in without my strategy saying so. Don't do it! It's not paying off.

3) Trade too big
Over-leveraging is what will kill your account, PERIOD. I has killed mine before and would do so again were I to ignore this advice again. Some lessons are painful. Trade small, stay alive to trade another day.

Avoid these and your life will be like...


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