Three Critical Pitfalls for Traders

Three recurring pitfalls that undermine trading results, with practical guidance on risk, discipline, and reflection.

Week 9Published

A short but very clear reflection this time. My first week back after leave is complete, and three critical process issues stood out during last week's mentoring calls:

  • Not focusing on one type of setup (plan/strategy/pattern), but continuing to try different things
  • Not having a checklist of (objective) confirmation points clear enough, or simply not keeping to one (see example checklists)
  • Not logging, or logging incompletely

If you want to make a success of (day) trading, you'll need to specialize and adopt a professional approach. If you're not yet achieving the results you want, one or more of the points above is likely not being followed consistently.

The question is: what will you specialize in, and how systematically will you go about it?

Below, another clean, straightforward short-reversal setup on gold that I saw coming from well in advance, but didn't take because I had committed to not trading during my first week back from leave. That's discipline, and discipline is like a muscle - it can be trained. To reach bigger goals, choices have to be made and stuck to.

Gold - 02/25/2026 - Reversal Short (H&S)
https://www.loom.com/share/35e9b148295a43c5b504990f227bbc58

Seven checks on the (objective) confirmation checklist:

  1. Double top rejection in resistance zone
  2. 50% retracement resistance zone on daily
  3. Trendline break + break and retest
  4. Retracement into the 9EMA on the 5-minute chart
  5. Retracement into VWAP
  6. Bearish candle
  7. 2R room

Addendum to the video above -> Take-profit level
https://www.loom.com/share/dfa5632403564ae0983c56bb329c32cb

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