Today we’re starting a series on the main mistakes in trading.
Feel free to ask questions in the comments and share your own tips and life hacks!
Let’s get started:
The mistakes are always the same, and they haven't changed over time. People traded in 1925 the same way they do now. They made the same typical mistakes then as they do today.
The reason is simple — human psychology hasn’t changed.
Trading is a battle with your own inner demons.
I have made a huge number of mistakes, killed countless nerve cells, and lost a lot of money — that's why I truly hope this and the upcoming posts will help you at least a little and save you some pain.
Mistake #1
No Trading Plan.
Trading "by feel" without clear rules for entry, exit, and risk management.
Treat trading like a business.
Because that’s exactly what it is: your business.
And as with any other business, success is only possible with a clear strategy (How much do I want to earn? How will I do it? What do I need? How much capital do I need? Why can I earn? What is my edge over others?), a deep understanding of the subject (study books and the experience of successful traders), persistence, patience, capital management, risk management, continuous analysis and adaptation of your trading strategy, and long-term thinking — focusing on a series of trades rather than any single success or failure.
Losses are part of the business. Accept them.
Do not identify yourself with your trades. Mistakes happen in any business.
When building your trading plan, always think:
"This trade can be a losing one."
This shifts your mindset immediately — you start thinking about how much you can afford to lose without blowing up your account or experiencing heavy stress.
Always set a stop loss immediately after opening a position. Limit your losses right away to a level you’re mentally comfortable with.
If you get hit emotionally, it could take a long time to recover — and possibly deal with stress-related health issues.
So what do we do?
We create a detailed trading plan — both long-term and daily.
Daily Plan:
It doesn’t matter what timeframe you trade on — even if it’s 5 minutes.
You should immediately mark your levels:
Where will you buy? Where will you sell? Where is your stop loss? What position size? Will you add to the position or not?
What will you do if the market opens down, up, sideways, or diagonally?
The trading plan should cover all open and planned positions.
Long-Term Plan:
I make a plan for the coming year. It looks more like a business plan:
How much capital do I have?
How much can I theoretically earn?
How will I earn it?
Will I reinvest or withdraw profits, and how often?
What are the commission costs (maybe it’s time to switch brokers)?
What is the maximum size I can open per instrument?
What is the maximum total exposure I can afford (especially if using leverage)?
What are the tax implications?
I usually review this plan once a month or as needed.
Mistake #2
Lack of Discipline in Following the Trading Plan
Great, you have a trading plan — now the task is simply not to break it.
Solution:
1. Once again — trading is your business!
Treat it that way. Don’t turn trading into a casino.
2. Before each trade, ask yourself:
Why am I entering this position? or Why am I exiting this position?
If you can't clearly and logically explain it — then don't enter the trade.
Answers like "someone told me," "I saw a signal," "I feel it," or "I hope" — are NOT acceptable.
3. Create a professional trading environment:
No distractions around you.
No eating at your trading desk (drinks are allowed).
No loud, distracting music.
Keep your workspace clean and focused.
Trading is a serious business — eliminate chaos.
Mistake #3
Overtrading
Taking too many trades driven by emotions, the urge to "win back losses," or FOMO (fear of missing out). In theory, if you have a solid trading plan and stick to it with discipline, overtrading shouldn’t happen.
But we’re human — and sometimes it’s hard to resist the urge to jump back in.
Solution:
One very effective method:
Halve your position size for each subsequent emotional trade.
Meaning: You’ll think twice before closing a position impulsively — knowing you can only re-enter with half the size.
And even if you start getting greedy or impulsive, this rule helps to limit your risk and potential losses.
These are the major mistakes.
We’ll dive into more detailed "fine-tuning" mistakes and techniques in the next post!
Feel free to ask questions in the comments and share your own tips and life hacks!
Let’s get started:
The mistakes are always the same, and they haven't changed over time. People traded in 1925 the same way they do now. They made the same typical mistakes then as they do today.
The reason is simple — human psychology hasn’t changed.
Trading is a battle with your own inner demons.
I have made a huge number of mistakes, killed countless nerve cells, and lost a lot of money — that's why I truly hope this and the upcoming posts will help you at least a little and save you some pain.
Mistake #1
No Trading Plan.
Trading "by feel" without clear rules for entry, exit, and risk management.
Treat trading like a business.
Because that’s exactly what it is: your business.
And as with any other business, success is only possible with a clear strategy (How much do I want to earn? How will I do it? What do I need? How much capital do I need? Why can I earn? What is my edge over others?), a deep understanding of the subject (study books and the experience of successful traders), persistence, patience, capital management, risk management, continuous analysis and adaptation of your trading strategy, and long-term thinking — focusing on a series of trades rather than any single success or failure.
Losses are part of the business. Accept them.
Do not identify yourself with your trades. Mistakes happen in any business.
When building your trading plan, always think:
"This trade can be a losing one."
This shifts your mindset immediately — you start thinking about how much you can afford to lose without blowing up your account or experiencing heavy stress.
Always set a stop loss immediately after opening a position. Limit your losses right away to a level you’re mentally comfortable with.
If you get hit emotionally, it could take a long time to recover — and possibly deal with stress-related health issues.
So what do we do?
We create a detailed trading plan — both long-term and daily.
Daily Plan:
It doesn’t matter what timeframe you trade on — even if it’s 5 minutes.
You should immediately mark your levels:
Where will you buy? Where will you sell? Where is your stop loss? What position size? Will you add to the position or not?
What will you do if the market opens down, up, sideways, or diagonally?
The trading plan should cover all open and planned positions.
Long-Term Plan:
I make a plan for the coming year. It looks more like a business plan:
How much capital do I have?
How much can I theoretically earn?
How will I earn it?
Will I reinvest or withdraw profits, and how often?
What are the commission costs (maybe it’s time to switch brokers)?
What is the maximum size I can open per instrument?
What is the maximum total exposure I can afford (especially if using leverage)?
What are the tax implications?
I usually review this plan once a month or as needed.
Mistake #2
Lack of Discipline in Following the Trading Plan
Great, you have a trading plan — now the task is simply not to break it.
Solution:
1. Once again — trading is your business!
Treat it that way. Don’t turn trading into a casino.
2. Before each trade, ask yourself:
Why am I entering this position? or Why am I exiting this position?
If you can't clearly and logically explain it — then don't enter the trade.
Answers like "someone told me," "I saw a signal," "I feel it," or "I hope" — are NOT acceptable.
3. Create a professional trading environment:
No distractions around you.
No eating at your trading desk (drinks are allowed).
No loud, distracting music.
Keep your workspace clean and focused.
Trading is a serious business — eliminate chaos.
Mistake #3
Overtrading
Taking too many trades driven by emotions, the urge to "win back losses," or FOMO (fear of missing out). In theory, if you have a solid trading plan and stick to it with discipline, overtrading shouldn’t happen.
But we’re human — and sometimes it’s hard to resist the urge to jump back in.
Solution:
One very effective method:
Halve your position size for each subsequent emotional trade.
Meaning: You’ll think twice before closing a position impulsively — knowing you can only re-enter with half the size.
And even if you start getting greedy or impulsive, this rule helps to limit your risk and potential losses.
These are the major mistakes.
We’ll dive into more detailed "fine-tuning" mistakes and techniques in the next post!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.