Trading is a skill that requires discipline, patience, and a well-structured strategy. However, many traders unknowingly sabotage their success by falling into common psychological and strategic traps. We call these the “7 Deadly Trading Sins” because they repeatedly derail traders from achieving consistent profitability.
In this article, we’ll break down each of these mistakes, explain why they’re harmful, and provide actionable solutions. Whether you’re a beginner or an experienced trader, avoiding these pitfalls can significantly improve your trading performance.
If you’re serious about mastering the markets, consider enrolling in our specialized courses:
Now, let’s dive into the 7 Deadly Trading Sins and how to overcome them.
1. Risking 2% of Your Account (It’s Ridiculous)
Many traders advocate risking a fixed percentage (like 2%) of your account per trade. While this seems logical at first glance, it has a critical flaw—it keeps you stuck in a losing cycle.
The Problem with Fixed Percentage Risking
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If you lose 50% of your capital, you now need a 100% return just to break even.
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The 2% rule forces you to trade smaller positions after losses, making recovery even harder.
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It assumes that losses will continue, which contradicts the random nature of trading outcomes.
A Better Approach
Instead of blindly following a fixed percentage, risk what you’re comfortable losing. Ask yourself:
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Can I handle 10 consecutive losses without blowing my account?
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Am I emotionally stable with this risk level?
Risk management should be flexible—focus on dollar amounts, not arbitrary percentages.
(Want to refine your risk strategy? Check out our Gann Advanced Trading Course for expert insights.)
2. Being a Greedy Idiot
Greed is one of the oldest sins—and it’s just as destructive in trading. Many traders chase unrealistic profits, leading to blown accounts and frustration.
Why Greed Destroys Traders
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Holding trades too long, hoping for a “big win,” often results in giving back profits.
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Ignoring 1:2 or 1:3 risk-reward ratios (which are professional standards).
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Overtrading to “make up” for losses.
The Solution
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Take profits when they’re there—don’t let greed turn winners into losers.
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Stick to realistic risk-reward ratios.
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Accept that consistent small wins outperform rare big wins.
(Learn disciplined trading strategies in our Mastering W.D. Gann’s Trading Strategies course.)
3. Day-Trading and Scalping
Many beginners believe day-trading or scalping is the fastest way to profits. It’s not.
Why Day-Trading Fails Most Traders
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High frequency = higher stress & mistakes.
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Broker spreads and commissions eat profits.
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Most retail traders lose money—only seasoned professionals succeed.
A Better Alternative
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Swing trading (4H/daily charts) reduces noise and stress.
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Fewer trades = higher quality setups.
(If you’re struggling with overtrading, our Financial Astrology Mentorship Program teaches patience and timing.)
4. Combining Trading Methods
Some traders mix indicators, strategies, and systems, hoping to improve accuracy. This only creates confusion.
The Problem with Overcomplicating Trading
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Conflicting signals lead to indecision.
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More indicators ≠ better results.
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Price action is often the clearest signal.
The Fix
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Stick to one proven strategy (e.g., price action, Gann methods).
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Remove unnecessary indicators.
(For a streamlined approach, explore Mastering W.D. Gann’s Trading Strategies.)
5. Cockiness and Arrogance
Overconfidence leads to reckless trading. The market humbles everyone.
Why Arrogance is Dangerous
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Ignoring risk management.
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Refusing to admit mistakes.
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Trading without a plan.
How to Stay Humble
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Keep a trading journal.
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Accept losses as learning experiences.
6. Thinking Too Much (It’s Bad for You)
Overanalyzing leads to paralysis by analysis.
How to Simplify Trading
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Follow your trading plan mechanically.
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Avoid second-guessing entries/exits.
(For a structured approach, join our Gann Advanced Trading Course.)
Final Thoughts
Avoiding these 6 Deadly Trading Sins can dramatically improve your trading performance. The key is discipline, patience, and sticking to proven strategies.
Ready to Master the Markets?
Which of these sins do you struggle with the most? Let us know in the comments