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Common Trading Mistakes

Why you're in a trading dilemma

Have you ever wondered what differentiates a successful trader from an unsuccessful one? Is there a key to become a successful trader and consistently making profit from the market?

Read through the top 50 common trading mistakes listed below.  
Do you identify with any of them in particular?  Note down the one (or many) that apply to you.


50 Common Trading Mistakes

1. If you can’t stick to the trading plan, you’re doomed
2. You need to create your own rules so you understand them
3. Have no accurate risk and profit objectives before placing a trade
4. Letting losses run and profits turn into smaller profits and losses
5. They make the mistake of closing out their good trades and hold their bad trades
6. Once a trader has a few winning trades he tends to become overconfident and starts guessing his trades, leaving his trading plan and research
7. Placing his winnings on one trade
8. Having no financial trading plan, traders tend to over trade their account size, small account large trade
9. Greed takes many forms, you may be just flicking through markets and suddenly start day trading, trying to scalp the market, having several losses, this was not part of your original trading plan
10. Fail to use stops, adding to a losing position


11. Fail to use predefined risk %
12. Always trading the same direction
13. New traders, trade emotionally
14. Looking a the market in too short a time frame
15. Unwilling to take a loss
16. Overtrading
17. You need to stick with your trading plan, if it states you are required to take a small loss then take the small loss, don’t be undisciplined and let that loss grow until it hurts. Trade the plan
18. If your technical analysis is telling you that the market has turned against you, then exit the market, don’t hold onto fundamental analysis, both have to be right
19. Cardinal rule: "Cut losses short. Let profits run."
20. Plan your trade and trade your plan, use your rational mind not your feelings


21. Most new traders have trouble with timing their trade and don’t have enough capital to make it through the smaller market retracements. Get your risk % right. Less is more
22. Traders need to understand the difference between small price fluctuation and a fundamental change in the market
23. If you're not disciplined and don’t follow your trading plan, this can lead to large losses and small profits
24. Not defining your defensive plan before opening a position
25. It is the emotional attachment to a position that will cause you to create large losers. You need to train yourself to keep loss small and practice holding winners for large wins
26. If your under capitalized one reasonable move could wipe you out
27. Overtrading and greed is simply a lack of discipline, that causes loss
28. Too many trades on at once. If you cannot remember all the trades you have in your head, then you have too many
29. Trying to trade inactive markets is dangerous
30. The risk is too large for a small profit, leads to loss


31. Traders lose money because, the loss is not in proportion to account size
32. Lack of discipline is a major shortcoming
33. Lack of discipline also includes results in attachment – holding on to losers, anger – woulda, coulda, shoulda, ego – trying to beat the market and accepting a loss quickly
34. Large accounts are no guarantee of success
35. Trading against the trend and not using stop loss orders
36. Insufficient capital to trade with
37. Improper money management are major causes of large losses
38. Do not over-trade your accounts size, plan your trades risk
39. Inability to ride winning trades, new traders tend to take small profits and miss out on large profits
40. Some traders are on an ego trip and won't take advice from another person; any trade must be their idea


41. Many traders cut their winners too soon and cut their losses too late
42. Traders that have no discipline have no plan, they over trade, no patience in waiting for correct set-up for entry and tend be anxious and exit profits to early
43. Traders using their intuition may cause them to hold losing trades, thinking its only temporary
44. Under capitalized, a small account limits diversification and power for staying in the market
45. Trying to pick tops or bottoms, is a common occurrence and a error
46. No trading plan, no money management, equals emotional trading
47. Not understanding the local sector and the global sector of the stock they are trading
48. Forgetting to use stop loss order
49. Trading against the trend
50. Inability to ride winning trades, new traders tend to take small profits and miss out on large profits

What's the Answer to Most Mistakes?


Now you have something concrete to focus your learning on.

At TradingLounge, we have helped hundreds of traders just like you turn their trading weaknesses into their trading strengths. It’s important that you know that we are here to help you along the way to become a more successful trader.

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  • Miachael G

    Hi Peter, I have been trading full time for a while now and have made great money, but my success had been very patchy, and I started to get very wobbly once in a trade and let my stops out etc, all the mistakes a novice trader makes. Until I met you and joined your service, I didn’t have much of a clue about wave structure and reading volume. It took me a little while to grasp the trading levels but it’s happening and the best thing is that every day when I tune into the service each morning, I learn something new and then I apply it straight away my effort/attention is more targeted with your guidance. My account is slowly growing again as I take baby steps getting the hang of your system. Thanks heaps.

    Eric  VIC
  • Keith M

    Just wanted to thank you very much for all your analysis. Quite a few have turned out shockingly accurate and the experience, intelligence and thoughtfulness that comes across – even to my student-level eye – is a joy. You have helped me hugely with my trading, especially in the realm of self-confidence to actually do this for a living.

    Don W. NSW