Over 90% of retail traders lose capital not because they lack trading indicators, but because they violate basic risk rules.
The 5 Pitfalls:
- Over-leveraging: Risking more than 1-2% of total capital per trade.
- Trading Without Stop Losses: Hope is not an institutional risk strategy.
- Chasing Extended Green Candles: Entering after the move has already exhausted.
- Revenge Trading: Doubling down immediately after a loss to make back money.
- Neglecting Market Context: Buying into overhead institutional supply zones.
