Top 15 Methods
Retail Traders Use That Result in Losses and Benefit Big Players in Trading
βOptions Trading
β Price Action Trading
β Indicator Trading
Alert π¨π¨Read this thread Only if you have capacity to accept / dream big for consistent profits
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Retail Traders Use That Result in Losses and Benefit Big Players in Trading
βOptions Trading
β Price Action Trading
β Indicator Trading
Alert π¨π¨Read this thread Only if you have capacity to accept / dream big for consistent profits
Scroll downπ to begin
1/15 π‘ Buying Cheap Out-of-the-Money Options:
Itβs tempting, but cheap options are often worthless. Instead, focus on probability and trade quality over quantity.
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Itβs tempting, but cheap options are often worthless. Instead, focus on probability and trade quality over quantity.
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2/15 π΅οΈββοΈ Overcomplicating Price Action:
Traders often use too many indicators with price action, creating conflicting signals. Simplicity is keyβfocus on pure price movements.
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Traders often use too many indicators with price action, creating conflicting signals. Simplicity is keyβfocus on pure price movements.
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3/15 π Ignoring Key Support and Resistance Levels:
Many traders overlook major support/resistance levels and end up buying near resistance or selling near support.
Mark these zones carefully in chart and not in mind.
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Many traders overlook major support/resistance levels and end up buying near resistance or selling near support.
Mark these zones carefully in chart and not in mind.
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4/15 β³ Holding Through Consolidation Zones:
Holding option buying position during low-volatility periods can lead to rapid time decay.
Wait for momentum market type before entering trades.
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Holding option buying position during low-volatility periods can lead to rapid time decay.
Wait for momentum market type before entering trades.
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5/15 π Overreacting to Minor Price Fluctuations:
Getting caught up in every tick or minor pullback can cause emotional decision-making. Focus on significant price action changes.
Give priority to High Probability based trade entry.
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Getting caught up in every tick or minor pullback can cause emotional decision-making. Focus on significant price action changes.
Give priority to High Probability based trade entry.
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6/15 πͺ Exiting Too Late:
Waiting for the "perfect" profit can turn winners into losers. Have a clear exit plan and stick to it.
There is nothing called " Perfect entry/exit in trading "
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Waiting for the "perfect" profit can turn winners into losers. Have a clear exit plan and stick to it.
There is nothing called " Perfect entry/exit in trading "
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7/15 π Chasing Losses:
Revenge trading after a loss is a recipe for disaster. Stick to your strategy and avoid emotional decisions.
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Revenge trading after a loss is a recipe for disaster. Stick to your strategy and avoid emotional decisions.
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8/15 β³ Ignoring Time Decay (Theta):
For Option Buying
Options lose value over time. Holding options too long, especially out-of-the-money ones, can quickly erode capital. Understand time decay.
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For Option Buying
Options lose value over time. Holding options too long, especially out-of-the-money ones, can quickly erode capital. Understand time decay.
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9/15 πΆ Trading Against the Trend:
Attempting to catch tops or bottoms can be dangerous. Instead, trade with the prevailing trend until it shows signs of reversal.
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Attempting to catch tops or bottoms can be dangerous. Instead, trade with the prevailing trend until it shows signs of reversal.
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10/15 π Chasing After Missed Moves:
FOMO is real! Entering late after a big move usually results in poor risk-to-reward trades. Be patient and wait for a proper setup.
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FOMO is real! Entering late after a big move usually results in poor risk-to-reward trades. Be patient and wait for a proper setup.
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11/15 π« Lack of a Clear Exit Strategy:
Failing to set stop-losses or profit targets leads to over-holding. Know your exit points before entering any trade.
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Failing to set stop-losses or profit targets leads to over-holding. Know your exit points before entering any trade.
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12/15 β° Relying on Indicators for Timing Entries:
Indicators should support your strategy, not define it. Relying on them exclusively for entry timing often leads to wrong/bad trades.
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Indicators should support your strategy, not define it. Relying on them exclusively for entry timing often leads to wrong/bad trades.
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13/15 π― Overconfidence in Indicator Signals:
No indicator is perfect. Many traders place too much faith in a single indicator, leading to poor risk management and losses.
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No indicator is perfect. Many traders place too much faith in a single indicator, leading to poor risk management and losses.
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14/15 π Overfitting Indicator Settings:
Optimizing indicator parameters for past performance (curve-fitting) rarely works in real-time markets. Stick to general settings ( only if you want to use indicator ) that work across various conditions.
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Optimizing indicator parameters for past performance (curve-fitting) rarely works in real-time markets. Stick to general settings ( only if you want to use indicator ) that work across various conditions.
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15/15 πΌοΈ Neglecting the Bigger Picture:
Focusing only on short-term charts without considering the higher timeframe trend can lead to poor entries and exits. Align your trades with the larger trend.
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Focusing only on short-term charts without considering the higher timeframe trend can lead to poor entries and exits. Align your trades with the larger trend.
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End of this thread
If you find it useful,
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3] Like and Retweet the 1st tweet or below tweet to benefit maximum traders πππ
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If you find it useful,
1] Follow me @learntotrade365
2] Join the Telegram channel for Live Market updates - telegram.me
3] Like and Retweet the 1st tweet or below tweet to benefit maximum traders πππ
x.com
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