10 Trading Mistakes YOU NEED TO FIX NOW!

Here are 10 mistakes that traders

consistently make that you can fix right

now to massively improve your

performance. Number one is ignoring

market structure. So in a trade like

this, you see the market starting to

flip to the downside. You see the

strength behind this downward move and

you start to look for a short. Whether

that's from an area of resistance or

whether you are using supply or demand

or whatever concept it may be, you start

to see the market shifting down. You

think this is a very strong trade. So,

you look to sell from one of these

points. Let's say you're doing what I do

and you are using supply and demand to

trade. You want to look for a sell like

this. But the problem is what actually

happens is the market drives all the way

up and takes your stop out. And that's

because you didn't consider the market

structure. When we zoom out and take a

look at what this market is doing, we

can see it is very clearly consistently

making higher highs and higher lows. So,

if we sell into this, it doesn't matter

how weak the market looks when we're

zoomed in like this. We are basically

trading against the trend. The trend is

up. And if we sell into this, we are at

very high risk of just being stopped out

while the trend continues. So make sure

you are always considering the market

structure. That's the highs and the

lows. Whether a market is trending up or

down. Mistake number two is not

considering high time frame context. So

this trade we have a market that is

moving down. It's very clear. It might

look like something we want to sell

into. So we could have a position like

this selling from the supply zone

looking to take this market lower. But

after we get into the trade, we get a

big drive to the upside and a pretty

major reversal. So obviously in

hindsight buys would have been the good

move. Now if we were to zoom out here

and consider some of the bigger picture

context, we would see that what the

market has just done is react from a

demand zone, a pretty significant demand

zone over here on the higher time

frames. With this extra context, we can

see that this trade is actually a bad

position because we are selling against

demand. We're selling against an area

that is very likely to create a market

reversal. So, make sure you've got high

time frame context. Zoom out, look at

the higher time frames, and scale down

with top- down analysis. That's going to

save you from getting into bad trades

and easily avoidable losses like this

one. Mistake number three is so simple,

but it's ever so common, and that is not

using a stop-loss. Now, when we get into

a trade, we should always have a

predefined target. So, if we wanted to

sell here, we should have our target

down towards wherever we want that to

be. But we should also always have and

instantly as soon as we take the trade,

a stop loss. Okay? This is going to

limit our risk if the market flips on

us. Now, sometimes traders get into a

trade and they don't place a stop-loss.

Whether that's because they think the

market couldn't possibly go higher,

whether it's this false idea that it's

got to reverse so it doesn't matter if

it gets up here, or whether it's simply

because you've placed the trade on and

you've said, "I'll come back in 5

minutes once I've had a drink and I'll

put my stop on." Now, regardless of what

the reason is, not putting a stop loss

on your trade is very dangerous because

the market can do this and it can just

continually move against you. It doesn't

matter how strong your bias is and how

much you think the market has to go

down, it can always do the opposite. And

if you take a trade without a stop, it

can easily flip on you and wipe out your

entire account. So, whatever the reason,

make sure you've got a stop-loss as soon

as you take a position. Mistake number

four is chasing price action, chasing

the markets instead of waiting for

better entries. So, in a trade like

this, we see this market falling with a

lot of strength, especially the past few

candles. This can lead you to believe

the market is going to continue moving

down, which can be right, but it can

then lead you to chase the market. You

might get into a trade down here

thinking if I get in here at least I'm

going to catch the rest of the move

because what I really don't want to do

is miss this trade. Or you could go even

riskier with a stop loss somewhere in

the range thinking because the market is

pushing so strong it must continue

pushing at this speed again. Now the

problem with this is the market is

generally always going to come back and

react from more meaningful levels before

it makes its larger moves. So, if you

chase the markets and jump in after

these large moves have taken place,

you're actually getting subpar entries

where your riskreward is going to be

terrible or you are upping the risk

massively by putting your stop in a

dangerous zone. What's better to do in

an example like this is to just wait for

the market to return to a highinterest

area such as this supply zone and you

would place your sell from there. And

will you miss some trades? Yes, you

will. But will you also avoid lots of

terrible losses? And will you also get

better riskreward and higher returns on

the trades that you do manage to take?

Yes, you will as well. So don't chase

the market. Don't get FOMO. Don't rush

to follow price action after these large

moves. Instead, identify the high

probability pullback regions like areas

of supply and demand and use those to

take high quality trades. Trading

mistake number five is holding trades

through major news. This is a trade that

looks solid. We have a supply zone to

sell from. We've had a break of

structure. We can expect quite happily

for the market to trade lower. However,

what we actually see is after we get

filled into our trade, there is a

massive spike, a big wick either way,

which stops you out of the trade, even

though the trade was generally good.

This was caused by economic news,

specifically the non-farm payroll, which

happens on the first Friday of every

month. What economic news does is

creates a speculative spike where

institutional traders are placing trades

either side of the market whether they

expect the market to go higher or lower.

And the short-term confusion driven by

the news creates these massive wicks

which can stop you out of even the best

trade. So make sure you're not holding

trades through news. Avoiding news is

simple. You can use a calendar like

fxstreet.com.

Go to the economic calendar and you will

have a list of all of the news and when

it's coming out. We don't really need to

worry too much about the yellow and

orange news, but this red folder news

where you see this red box, you want to

avoid trading through that on the

specific asset. So, for example, there

is red folder news for the euro. Make

sure at this time on this day, you are

not holding any trades on the euro

because you will be prone to getting

spiked out like what we just discussed.

Mistake number six is trading too big.

If you get into a trade with a very

large lot size, bigger than your account

can handle, thinking if this works out,

it's going to hit a home run trade.

Well, there's two risks to this. Number

one is the trade loses and you end up

taking a massive catastrophic loss that

eats a lot of your account. But number

two, the other mistake and the more

common one is if the trade runs into

draw down a little bit, which by the way

is completely normal for a trade, you

might end up closing the trade down here

in a panic that it's going to get worse.

Every time the market pushes a little

bit into draw down, you might be

worrying and looking to get out of that

position because you now have lost faith

in the trade simply because you don't

have confidence due to how much you've

risked. That can lead you to get out of

trades early before they end up making

the proper move, which means you've

actually taken a loss even though the

trade worked out. If you just used a

reasonable risk percentage instead, you

could have profited from the trade

because you wouldn't have hesitated to

hold it once you were in. So, when you

size too big, you open the doors to big

losses, but you're also swayed by

emotions and end up messing up good

positions. Mistake number seven is

risking random amounts on each trade.

So, if you take a trade like this and it

makes $4,000, this feels good in the

moment. But if your risk is all over the

place and you risk more on your next

trade, well, you might lose $5,000. In

which case, trading can start off by

looking well if you hit a streak of

winners. But with random risk and no

control over how much money you win or

lose on each trade, trading will

eventually look like this where your

winning streak will come to an end and

those massive losses will take over and

drive you into a deep draw down and a

lot of sadness. So what you should do

instead is risk a set percentage on

every single trade you take. Doesn't

matter how confident you feel about the

position. That is not an excuse to size

up. I would say choose 1% risk per trade

and stick to that on every position you

take. That's going to keep your losses

controlled and allow your riskreward

edge to play out. So, stop risking

random amounts on trades. Stick to 1%

per trade. Mistake number eight is

trading through rollover. Now, rollover

is a time of day and something that

happens around 1000 p.m. UK time to

11:00 p.m. UK time. There is something

we call a spread rollover or a spread

widening. It's where brokers roll over

the day's price action. And basically,

the spread, the difference between where

you get into a trade and the current

market price will widen massively. Now,

if you've ever taken a trade and it

looked completely fine and the market

didn't even reach your stop loss, but

for some reason you got stopped out and

you couldn't work out why, that's

because of rollover. The market chart

doesn't even need to get down to your

stop- loss for you to take a loss on a

trade. The same goes for short

positions. It's like a sneaky trap that

forces losses on really good positions.

So, the best thing you can do to avoid

this scenario, and now you know if it's

ever happened to you why, is just simply

to avoid trading through that rollover

time. Unless your trade is already very

deep into profits, that is 10 p.m. to

11:00 p.m. UK time, GMT. Avoid trading

through that time and you will avoid the

rollover. This is a big one, so don't

forget about this. Mistake number nine

is constantly switching strategies.

You're probably guilty of this. You

watch a YouTube video, you see a new

trick, a new tip, a new method, and you

go and try and apply that. You try it

for a bit, it doesn't work, you move on.

Now, what this does when you are

constantly switching strategies is it

messes up your progress path. Every time

you find a new system, you move in the

right direction for a short period of

time, but then you start to hit some

losses. You lose faith in the system.

You switch your system and you kill all

your progress by going and looking for

something else in another YouTube

tutorial. Now, the problem is here when

this happens, you pretty much hard reset

your progress back to zero over and over

again. So, you never actually give a

system time to see the results. You

don't work with it long enough. You

don't test it. You don't build

experience with it. So you are doomed to

lose because you are basically guessing

as to whether each system works. Now

when you focus in on one repeatable

system, we get an exponential growth

curve. And the reason for that is number

one, we get to know the system and we

get to know how to apply it correctly.

But number two, when we're working with

one similar approach, we can build upon

the data that we've collected to refine,

improve, and optimize this system over

time to reach that exponential growth.

So if you are constantly switching

strategies, constantly looking for new

technical methods, stop. Focus in on one

system, refine, optimize, and improve

it, and you will reach exponential

growth. And mistake number 10 is

thinking that every trade should win. No

one is going to win every trade they

take. In fact, the best traders in the

world generally win around half of the

trades they take. So, when you're

getting angry over losses, it's no help

cuz it goes against the logic of a

probabilities based market like what

we're trading. So, there are three

elements we should consider instead

inside of our risk management in order

to become profitable. risk per trade,

risk-to-reward ratio, and win- loss

ratios. We already said we should really

look to risk 1% per trade because that

is going to give us the best odds of

controlling our losses long term. When

we have risk locked at 1%, we can then

focus on a riskto-reward edge.

Riskreward is the concept of risking $1

to make $2 or more. And to find the

sweet spot, I think every $1 risked

should have the goal of returning $3 in

profits. Which means after you've taken

two trades, one win and one loss, which

is only a 50% win rate, you would have a

$3 win and a $1 loss, which is $2 in

take-home profits. Now, obviously, you

can amplify this to risk $10 per trade,

$100 per trade, or $1,000 per trade,

which is going to massively amplify the

returns that you make. And our win- loss

ratio, we can't really control it, but

anything above 30% is actually going to

be profitable when you follow this

system. 50% is attainable though and

that should be the goal you work towards

through optimizing, refining and

improving over time. So instead of being

angry about losses, what you want to do

is learn to control the downside and

maximize the upside with riskto-reward.

So those are 10 of the most common

trading mistakes. If you do what I've

said today, you can fix those and your

trading will improve 10fold. If you want

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