· Buying strength late (top
chasing): Entry occurs after visible expansion and emotional confirmation.
· Selling weakness late (bottom liquidation): Exit occurs after pain peaks, often near exhaustion.
· Increasing size after losses (recovery impulse): Position sizing becomes driven by frustration.
· Averaging down losers: Capital is added to a position that has already been invalidated.
· Cutting winners too early: small gains are taken quickly to lock in certainty.
· Letting losers expand (failure to exit): Losses are held in expectation of a reversal.
· Moving stops: Risk boundaries are adjusted after entry to reduce discomfort.
· Using breakeven as a psychological exit: Trade management shifts from structure to emotional relief.
· Strategy switching / no stable system: Methods change before statistical validity can emerge.
· Trading on impulse (whim-based entries): Decisions arise from momentary internal states.
· Overtrading (no stopping rule): Continuous engagement replaces selective execution.
· Ignoring the higher timeframe/market trend: Local price action is traded without the broader market trend in mind.
· Trading thin or illiquid markets: Execution risk (spread, slippage, traps) is underestimated.
· Confusing outcome with decision quality: Random wins reinforce poor behavior; good losses are rejected.
· Outsourcing conviction (following noise): Decisions depend on external signals such as chat, headlines.
· Selling weakness late (bottom liquidation): Exit occurs after pain peaks, often near exhaustion.
· Increasing size after losses (recovery impulse): Position sizing becomes driven by frustration.
· Averaging down losers: Capital is added to a position that has already been invalidated.
· Cutting winners too early: small gains are taken quickly to lock in certainty.
· Letting losers expand (failure to exit): Losses are held in expectation of a reversal.
· Moving stops: Risk boundaries are adjusted after entry to reduce discomfort.
· Using breakeven as a psychological exit: Trade management shifts from structure to emotional relief.
· Strategy switching / no stable system: Methods change before statistical validity can emerge.
· Trading on impulse (whim-based entries): Decisions arise from momentary internal states.
· Overtrading (no stopping rule): Continuous engagement replaces selective execution.
· Ignoring the higher timeframe/market trend: Local price action is traded without the broader market trend in mind.
· Trading thin or illiquid markets: Execution risk (spread, slippage, traps) is underestimated.
· Confusing outcome with decision quality: Random wins reinforce poor behavior; good losses are rejected.
· Outsourcing conviction (following noise): Decisions depend on external signals such as chat, headlines.
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