Common mistakes in trading — and how to avoid them
Ask any experienced trader what did the most damage early in their career and the answers are remarkably consistent. Not exotic strategies, not bad luck — the same handful of avoidable mistakes, repeated with confidence.
Mistake one: starting too big. The fastest way to turn tuition into trauma is to begin with money whose loss hurts. Emotionally loaded capital produces emotionally loaded decisions, and emotionally loaded decisions are almost always bad ones. Start with an amount you can afford to watch drop 20% without reaching for the panic button — on Couponeau App that can literally be the CA$250 / A$350 minimum.
Mistake two: no written risk limit. "I'll see how it goes" is not a risk limit. Decide, before your first trade, the maximum you are willing to lose in a day, a week and per strategy — write the numbers down, then configure them as the platform's loss limits. The engine enforces limits without mercy or mood; that is precisely their value.
Mistake three: overtrading. Every additional trade is another chance to be wrong, and transaction costs compound quietly. Beginners trade often because activity feels like progress; professionals trade when their conditions are met and otherwise do nothing. Automation helps here — a strategy defined by clear conditions simply cannot get bored and click.
Mistake four: marrying a position. The market does not know you own it. When the reason you entered a trade is gone, the trade should be gone — no averaging down "to fix the price", no holding a losing position because selling would make the loss real. Losses that are acknowledged early stay small.
Mistake five: judging strategies in days. Any strategy worth running will have losing weeks. Evaluating it after three bad days guarantees you abandon good systems and keep bad ones — the only survivor is the strategy that got lucky recently. Review monthly, with your manager, against the plan you wrote at the start.