Many traders try to find the perfect trading system without realizing that the problem is not with the trading system, but with the people using it. Good, advantageous trading systems in the long run can still lose if the trader using it makes trading mistakes. Here are 10 mistakes that can destroy a profitable trading system that you should avoid.

10 mistakes that will destroy a good trading system and turn it into a losing system:


1. Not respecting the initial stop loss of a trade: it is possible that the price has already reached the stop loss but still refuses to exit, or pulls the stop loss further; or exit before the price hits the stop loss. Scenario 1 will cause the expected losses to be much larger than initially making it extremely difficult to make a profit to compensate; case 2 is to lose the advantage of the system when exiting the order before the stop loss is triggered

2. Panic and stop trading in losing chains. All systems in the world will have a losing streak from time to time, don't panic, keep the order volume low, or reduce the volume until the system "catches up" with the market. Some systems will work well when the market is moving sideways, others will only work when the market is trending. We must wait patiently until the advantage of the system returns.


3. Loss of discipline when placing orders due to emotions or personal ego. That is to do differently from what you should do according to the plan. This makes the advantage of the system lost

4. Trading volume is too large, leading to large loss orders that are difficult to make up for, more heavily when the chain of losses causes the account to lose a large part. A 50% drop needs to earn 100% of the profit to break even as the original. No system can survive with such a big order

5. Sudden change of trading rules without research: eg switching from profit taking to trailing stop, placing a tighter/wider SL than usual. These changes may make you more money in the short term, but not sure in the long term.


6. Try to trade a system that is not suitable for you. If traders can't stand large drawdowns, they should choose a low-risk, medium-return system

7. Loss of trust in the system. Try to build trust in your system so you can stay disciplined during drawdowns, losing streaks

8. Transactions in other people's systems without understanding. Mastering a system requires at least a few years of trading with it on a real account.


9. Trade larger volumes in a losing streak in hopes of making a quick gain on lost money.

10. Play all in account with 1 command. Sweepstakes are not.