👉Trade too big - Don't use more than 6% of your capital when trading. Ensure your liquidity is low
Money Management (MM) is key in trading and shouldn't be overemphasized. Any successful trader will tell you this. To be able to do this means that one must have a mastery of one's emotion. Emotion kills faster than lack of trading skills.
👉Trade based on your emotions - Trading is about 90% psychology. Guard your mind and your heart so you can properly apply your trading plan.
👉Trade based on predictions - Don't trade based on financial advice from someone on telegram or any of the social media platforms. Do your own research.
These two quoted are of the same consequences. Emotions and predictions based on assumption without any Technical reading are highly fatal to trades.
👉Cut winners fast: Don't be greedy!! Collect your profits.
What happens after you exit a winning trade and the trade continues in your direction? Aren't you going to beat yourself silly for panicking and cutting it short? Well, the best approach is to move your SL to Entry level or Break even without exiting the trade and then wait for it to either hit your TP or revert to your new SL with some profit for you.
👉Let losing trades run: This would kill you, if a trader is going bad I think it's better to close the position at your stop limit rather than letting it run in hopes it may come back to our favor.
A lot of traders do that (yours sincerely too as a greenhorn), and it's done in expectation that the losing trade will revert and head their direction. Most times it does. But in those times it would've have eaten deeply into the capital before reverting. Sometimes it burns the account to zero and then the trader is forced out of trade.