Part Five — Practice
Chapter 14 — Common Mistakes
| What happens | Why it is a problem | Better approach |
|---|---|---|
| Buying below resistance | You buy directly into the area where sellers may be waiting. | Wait for a confirmed break and retest, or a reaction from Support. |
| Selling above support | You sell directly into the area where buyers may be waiting. | Wait for a confirmed break and retest, or a reaction from Resistance. |
| Ignoring the higher timeframe | A lower-timeframe idea can conflict with a major boundary. | Establish H1, H4, and Daily context first. |
| Trading every touch | A touch alone does not demonstrate reaction or continuation. | Wait for confirmation and select only meaningful levels. |
| Ignoring confirmations | You enter before the market has demonstrated a change of direction. | Require a visible reaction and follow-through. |
| Using weak levels | Small reactions may not support a reliable decision. | Classify the level and prioritise significant context. |
| Moving the stop loss | A planned small loss becomes an unplanned large loss. | Keep the stop at the original invalidation point. |
| Emotional trading | Fear and frustration replace the written process. | Pause, record the decision, and return only with a valid plan. |
| Chasing price | Late entry increases stop distance and reduces potential reward. | Accept the missed move and wait for the next planned opportunity. |
| Overtrading | Repeated low-quality exposure compounds costs and emotional pressure. | Set a daily limit and trade only checklist-qualified reactions. |
Read this table again after every losing week. Most losses are a repeat of a line in it.
Key concepts
- Location matters
- Confirmation matters
- Stops must remain at invalidation
Practical example
A valid-looking candle directly below resistance is declined because the location is poor.
Common mistake
Repeating a losing behaviour without reviewing why it failed.
Knowledge check
Check your understanding
Reading is free.Create a free accountto save your progress and continue where you stopped.