There are endless ways to trade badly. You can change these if you make an effort and become self-aware. Be on the lookout for these pitfalls.
Here are the top 20:
1. Angry trading: When you trade angry and want to win from the time you enter to the time you exit, you get angrier and make mistakes if your trade goes against you.
3. Tight trading: You set stop losses too close, you trade too small, or you exit winning trades too quickly.
4. Aggressive trading: Trading too big on every entry with an all or nothing mentality. You think each entry is a great trade, and you try to maximize your gains by risking large losses through big position sizing.
5. Passive trading: You have no strategy for entries or exits. You chase the price action any way it goes with no defined strategy.
6. Over trading: You take more trades than you really should, causing excessive commissions. Over trading is caused by boredom and the fear of missing out.
11. Frustration trading: You can not make good decisions because the price action frustrates you.
13. Revenge trading: You trade with the belief that the market owes you money. It skews your perspective and gives your trading a bad motivation.
14. Underfunded trading: You trade with an account so small that commissions are a high percent of your account. You trade too large in an attempt to grow your money fast and blow up your account.
15. Shame trading: You are embarrassed to trade because you were to confident and vocal about trades that went sideways.
16. Distracted trading: Your trading is low on your priority list and you easily lose your focus.
18. Envy trading: You get demoralized by someone else’s great trading that you find it hard to trade your own system.
19. Demolition trading: You feel unworthy of trading success and money so you subconsciously trade in a way that destroys your account and helps you fulfil your prophecy.