Trader Dale Volume Profile

The 10 most common trading mistakes you should avoid
everything. It may look like a really small chance that you take for example ten losers in a row,
but the problem is that sooner or later it will happen. And when it does, you blow your account.
Even in casinos, it happens from time to time, that one color in roulette appears 20 times in a
row. If your initial bet were only $10, in the 20th round you would need $5,242,880 for another
bet and you would be down $10,485,750. If you are curious, the world record is one color 32
times in a row!
Usually, you will be able to tell on a first sight if somebody is using martingale. Below is an example
of how a typical equity curve of a martingale strategy looks like:
There are numerous martingale variations. People, for example, don't close their losses so the
equity (which is based on closed trades) doesn't have the dips – except for the last dip which
destroys their account. All martingale variations have one thing in common – they will all fail
sooner or later. There is no way the martingale strategy works in the long run.
#3 Believing too much in one trade
No matter how thorough your analysis is and no matter how good your trading level or trading
idea appears to be, trading is always a game of probability. Even the best ideas and best-looking
trades don't always end in a profit. In fact, the best looking ones don't usually go as planned, in
my experience. For this reason, don't believe and don’t risk too much on one trade, no matter
how appealing it looks to you. It may look like the perfect trade but it can still surprise you and
fail as any other level. Even the best levels can have for example 70 % win chance. 70 % is really
good, but still, you don’t want to risk too much money on it.
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