Here are the best answers from my Facebook trading group when I posted the following question:
What is one of your bad trading habits that causes you to lose money?
- Underestimating the possibility of volatility expansion at times and taking too big a position size.
- Overly optimistic that the market will trend well… only to reverse.
- Averaging in on losing positions.
- Not studying more.
- Not following the trend and trying to predict the top or bottom.
- Following other’s trades.
- Deviating from positive expectancy models.
- “Fighting” back instead of taking the loss/killing a bad trade (bad trade = against the plan)…
- Trading too large for my account size.
- Overtrading.
- Starting the day “looking” for something to trade like a trading addict.
- Wishful thinking for big profits.
- Taking trades that aren’t “my” trades.
- Focusing on returns instead of risk-adjusted returns.
- Closing trades too soon.
- Not being consistent in daily activity but being inconsistent is not something I do consistently.
- Going all in.
- Probably tweaking my strategy too much during drawdowns.
- Moving my stop up too quickly.
- Not being patient.
- Feeling like I have to do something.
- All of the above.