Live markets reward discipline and punish improvisation. Here’s a concise field guide to the pitfalls that drain P&L—and the exact fixes.
1) No Written Plan
Why it hurts: Inconsistent execution, emotion-driven choices.
Fix: One page: market context → setups → entries/exits → invalidation → risk/targets → review cadence.
2) Overleveraging
Why it hurts: Small adverse moves = outsized drawdowns.
Fix: Risk 0.5–1% per trade. Size via formula; never by feel.
3) Ignoring Risk
Why it hurts: Small losses become account events.
Fix: Stops at invalidation, daily max loss 2–3R, weekly circuit breaker.
4) Emotional Trading
Why it hurts: Fear/greed overrides logic.
Fix: Pre-trade checklist, breath timer, “If-Then” rules (if tilt → stand down 30 min).
5) Failure to Adapt
Why it hurts: Old edges in new regimes.
Fix: Label day type (trend/balance), update playbook monthly, retire underperforming filters.
6) Overtrading
Why it hurts: Costs + noise > edge.
Fix: Max trades/day, A+ setups only, use alerts—not the feed—to trigger focus.
7) Chasing Losses
Why it hurts: Compounds errors.
Fix: Post-loss reset: size ↓ 50% or stop for the day. Review before next session.
8) Lack of Research
Why it hurts: Blind spots around catalysts/liquidity.
Fix: Daily levels + economic calendar; know ONH/ONL, VWAP, POC/VAH/VAL.
9) Not Learning
Why it hurts: Repeat leaks.
Fix: Journal R, MAE/MFE, rule breaks. Weekly 15-min review: keep/fix/stop.
10) Ignoring Economic Indicators
Why it hurts: Surprise volatility.
Fix: Mark CPI/FOMC/payrolls, avoid trading 30 min before/after major releases.
30-Second Pre-Trade Checklist
Context (trend/balance) & key levels marked
Setup = A+ with defined invalidation
Risk 0.5–1%, target ≥2R, size by formula
News windows blocked, alerts set
Emotion check → proceed or pause
Journal tag ready (setup, notes)
Bottom line: Trim the leaks, codify the rules, and let risk discipline do the compounding.