Look, I don’t care how good your trading strategy is, if you’re making even ONE of these seven mistakes, you’re flushing money down the toilet.
Today I’m going to show you 7 deadly trading mistakes that even experienced traders make…and that might be quietly bleeding your profits without you even realizing it.
And believe me, I’ve made most of these mistakes at one time or another myself.
Mistake #1: Trading the First 15 Minutes After the Market Opens
The first 15 to 20 minutes of the trading day might look exciting…
…but it’s where most traders get destroyed.
You have got a dozen alerts going off and stocks gapping. You have wild moves, but there’s no volume to back up these moves.
This is not opportunity, it’s noise and it’s false breakouts. It’s where you’re going to get hosed.
Think of it like running through a traffic light. Total chaos.
Instead, be patient. Let the volume develop. Let the market show you which stocks actually have institutional backing.
Then strike with confidence, not impulse.
Mistake #2: Chasing Stocks that Gap-Up
Nothing gets traders more emotional than a stock gapping up at the open.
But if you chase that move blindly, you’re just buying someone else’s exit.
Smart traders wait for the confirmation.
If the stock pulls back to something called the 9 Exponential Moving Average, the 9 EMA on a 5-minute chart and it holds, now you’ve got structure. Now you’ve got a lower-risk setup.
Mistake #3: Ignoring Economic Reports & Fed Days
Ever had a trade that looked perfect, then suddenly reversed like someone pulled the rug out?
Check the clock. It might be 9:45 AM, 10:00 AM, or 10:30 AM Eastern Time
when those economic numbers hit the tape.
These releases can whip the entire market around instantly.
Even worse? Fed Day.
When the Federal Reserve announces any policy decisions. Right around 2:00 PM, the market goes into seizure mode.
It’s not tradable. It’s gambling.
On Fed Days, I flatten my positions, sit on my hands, and wait out the rest of the day.
I do not keep trades on during the last few hours of trading. I’m not trying to play roulette with my money.
PRO TIP: Bookmark the economic calendar. Check it every single morning as part of your trading preparation.
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Grab your copy here and then come right back because these next four mistakes are just as dangerous.
Mistake #4: Trading Without a Stop Loss Order
This one is just inexcusable.
Every. Single. Trade. Needs. A. Stop Loss Order.
Even the best-looking setup can fail. And when it does, you need a way out that doesn’t involve panic or prayer.
Every trade needs a price where you acknowledge that you are totally wrong and the trade is not working and you need to bail out.
You put that order in the system the moment after you enter the trade.
Besides admitting your wrong, it prevents you from taking losses when other bad stuff happens:
The internet goes out.
Some unexpected news hits the market.
Or some random geopolitical headline tanks everything.
Your stop loss order is your insurance. Without it, you're flying without a parachute.
Mistake #5: Buying below the 9 EMA on a 5-minute chart
This is one of my hard and fast rules.
If a stock, security, crypto, or futures is trading below the 9 EMA (Nine Exponential Moving Average) on the 5-minute bar chart or candles chart, it is NOT in play.
If you are going to go long and it’s below that 9 EMA, it’s not in play, and vice versa.
I don’t care how good the breakout looked ten minutes ago; if it’s under that 9 EMA, it’s done with that pump. Period.
Same thing if you’re shorting. Don’t short a future, stock, or a crypto that’s above the 9 EMA either.
The 9 EMA is brutally honest. It tells you what’s still strong and what’s already fading.
If you do not know or understand what the 9 EMA means (Nine Exponential Moving Average), go look it up on Gemini, ChatGPT or Grok because it’s very simple.
I think it’s one of the most important indicators for day trading.
Learn to trust it like I have.
Mistake #6: Holding a position in stock over an earnings announcement
This is a landmine a lot of traders step on.
You decide to hold a stock overnight and bam, it drops 12% after earnings.
Even when the numbers are good!
That’s the stock market. It doesn’t care about “better than expected.” It cares more about future guidance and other unexplainable factors.
Never hold a stock into earnings. That’s not trading, that’s gambling. Of course, the reverse is a mistake. That’s shorting a stock before earnings.
Mistake #7: Trading on an Underpowered Computer
This one’s rarely talked about, but it’s a silent killer.
If your trading computer, the machine you use every day for trading, isn’t powerful enough, you’re at a major disadvantage.
Every second matters in trading.
And if your system freezes, lags, or crashes during a key moment, that’s real money lost.
It’s called slippage and it adds up fast over time.
If your computer’s benchmark score, its horsepower, is under 25,000, you’re already skating on thin ice.
If you want to eliminate slippage and future-proof your setup, I recommend a score over 50,000.
You can test your current system right now at: EZTradingComputers.net/cpu
Don’t trade with a data bottleneck on your computer.
Recap
- Avoid the first 15 minutes after the market opens
- Don’t chase gap ups
- Watch that economic calendar
- Always and forever use a stop loss order
- Respect the 9 EMA (Nine bar or nine candle exponential moving average)
- Know your earnings dates if you trade stocks
- Upgrade your trading computer
If any of these hit home for you, grab a copy of my Ultimate Guide to Trading Stocks here.
If you want to level the computer you use for trading, then also get my Free Trading Computer Buyer’s Guide here.
I’ll show you exactly what to look for in a real trading machine without wasting money on some overpriced or underpriced gaming junk.
