Trader Dale Volume Profile

The 10 most common trading mistakes you should avoid
#4 Using too big positions
When you are using too big positions and everything goes fine, then
you have excessive gains and it feels just great. However, when
things turn bad and you take few losses, big positions will drive you
crazy. I can guarantee you, that if you use for example 10% risk per
trade and take 5 losses in a row, you won’t be able to think clearly
anymore. You will most likely bend rules of your strategy and you
will end up even in a bigger mess than you already were.
My advice is to use position sizes that you feel comfortable with
even after you took a losing streak. If you don't feel mentally fine
and stable when losing, you need to lower the volumes of your
positions.
Use position sizes
that you feel
comfortable with
even after you took
a losing streak.
#5 Never being able to admit you were wrong
Every trader knows the feeling when the price goes past their S/R level and suddenly they are
more and more in red numbers. It helps to have a predetermined SL and just automatically take
it. There are, however, traders who don't have predetermined SL and they sit, watch and hope.
They are not able to admit that their super level doesn't get respected. So, they sit and wait for a
miracle to happen. Trades like that only rarely end up with the miracle. In most cases, such trades
end up in a disaster.
#6 Not using Stop-loss
Not having a SL means that you can't control the risk of your trades.
Risk control is essential in money management and in profitable
trading. Not having a SL means that with every trade you place, you
potentially lose your account. This can't even be considered a
serious trading. Yet, some people still do it. Seriously, not using SL
is probably the dumbest thing you can do in trading.
Not using SL is
probably the
dumbest thing you
can do in trading.
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