Hosts Luke Moore, Sean Power, and Pete Ward break down the five most common mistakes retail traders make and share practical solutions to avoid them. Drawing from their extensive experience, they discuss poor risk management, overtrading, emotional biases, lack of trading plans, and unrealistic expectations.
Timestamps
00:00 - Introduction and overview
01:42 - Why traders make mistakes and how awareness helps
03:52 - Mistake #1: Poor risk management and position sizing
07:27 - Research on percentage-based stops
09:12 - Psychology of chasing losses
10:36 - Mistake #2: Overtrading and transaction costs
14:53 - How transaction costs affect trading performance
17:19 - Benefits of cooling-off periods after losses
17:58 - Mistake #3: Emotional biases and the disposition effect
20:17 - Banking gains and accepting losses
23:21 - Research on trading psychology
24:56 - Mistake #4: Lack of trading plan
28:16 - Statistics on trading plans
32:38 - Six essential components of a trading plan
35:04 - Mistake #5: Unrealistic expectations
37:35 - Reality vs. expectations in trading returns
42:18 - Summary of the five major trading mistakes
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