The are many ways to make money in the financial markets BUT there a consistent way to repeat the same mistake. Sometime this act is called self-inflicted injury, self sabotage or even friendly fire. Whatever name you want to call it and how it happens will only result in losses in the trading account.
I have my own fair share in this as well and over time put in place rules to ensure this do not happen or minimize or manageable.
Two common contributor to this is the distractions cause by short term intraday volatility instead of the longer term trend or more aptly called microscopic price volatility analysis.
The other is the wrong priority between flowing with the trend versus predicting trend reversal. It took me many years to realize one of the author in one of the books I read stating .... let market worries about itself when it is going to turn. let market pick its own time and level where and when it is going to happen. You just worry and focus the in between.
Simple non-mathematical .. rocket science statement ... very philosophical ... very profoundly true!!!
Trend don't change all the time .... only certain time and twice. This events accounts for less than 10% and 90% is the in-between.
If one spend 90% of the effort in market reversal prediction or forecasting, than one has the time allocation and priorities WRONG.
It need not be 200% perfect but it must be reliable and flexible to adapt into a changing/dynamic trend
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