5 Common Trading Mistakes That Will Keep You Broke
I have coached hundreds of traders. The sad truth is that most of them lose money for the exact same reasons. It's rarely a lack of intelligence; it's a lack of discipline.
1. Over-Leveraging
This is the big one. Trading too big for your account size. "If I just use max leverage, I can double my account today!" No, you will blow your account today. Never risk more than 1-2% of your account on a single trade.
2. Moving Stop Losses
You enter a trade. It goes against you. You think, "It's just a pullback, I'll give it more room." You move your stop. It keeps dropping. You move it again. Suddenly, a small $100 loss becomes a $1,000 catastrophe. Honor your original stop.
3. FOMO (Fear Of Missing Out)
You see a big green candle. You think, "The train is leaving! I have to get in!" You buy the top. The market immediately reverses. Chase price, and you will get burned. Wait for the pullback.
4. System Hopping
You try a strategy for 3 days. It has one losing day. You say, "This doesn't work," and switch to a new YouTube strategy. You never give the law of large numbers time to work in your favor.
5. Trading Without a Plan
See our previous post. If you don't know what you are looking for, you are just gambling.
Risk Disclosure & Disclaimer
Educational Purposes Only: The content provided in this blog is for educational and informational purposes only. It does not constitute financial, investment, or trading advice. Young Money Investments is not a registered investment advisor, broker-dealer, or financial analyst.
Risk Warning: Trading futures, forex, stocks, and cryptocurrencies involves a substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, and options may fluctuate, and as a result, clients may lose more than their original investment.
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