In the journey to amass wealth, one of very often tempted to cut corners and hasten the journey most often not by dubious ways but sometimes by throwing risk management outta window.

Below are 7 of the deadly sins you want to keep an eye out for, be sure to jot this down somewhere as you read.

🔸1.Pride

Overconfidence is one of the biggest causes of bankruptcy in trading.

You think that you know it all ~> you risk a little too much ~> you win, excess of confidence is reinforced ~> suddenly you lose grip on an unexpected market reaction because of the cloudy vapors of glory stemming from your ego.

Continuously criticize your strategy with perspicacity, keep studying the market as it changes continuously, and always find out the cause for the outcome of your trading.

🔸2.Greed

Avarice or excessive and unrealistic ambition
caused by a subconscious fear.

It is impossible to become rich in a week without making an effort to learn and investing your own time, hard-earned money, and dedication.

There is no free lunch, and you will have to be persistent in acquiring the necessary skills if you want to succeed.

🔸3.Lust

The ultimate technological gadgets will not help you to advance in trading.

Too many screens and too much time watching the charts lead to stress and anxiety, eye strain, and a state similar to hypnosis and delusion.

You will begin seeing nonexistent signals, or you will be paralyzed and fascinated by screen movement when it is the moment to act.

Never spend more than 5 hours a day watching your computer monitor.

Make several pauses along the way because a focused activity has a relatively short time span, something around two hours, maybe even less.

Stay healthy.

If your health declines, you will not be able to apply your methodology as well, and the odds will start piling against your success.

Your ability to manage your screen time and overall daily life schedule efficiently will determine your success or failure.

🔸4.Envy

Some traders are always comparing themselves with other apparently more successful traders, trying to:

•Copy their strategies
•Clinging around to get their trading calls •Asking for directions

Always doubt that anyone has really found that elusive Holy Grail.

Analyze by yourself, use your own common sense, and develop and build your own system.

🔸5.Gluttony

Respect your stops.

Take profits with prudence and
intelligence.

You can never catch a complete rally.

Not all trades will be winners.

1 % more can become 50 % less.

🔸6.Wrath

Anger and revenge will cloud your judgment.

You feel that the market is against you, price always moves in the opposite direction of your trade, and your broker is after you and wants you to lose, hunts your stop losses, and separates you from your money and potential profits.

If price is always going against your trade, most probably you simply made a mistake.

Accept your losses, wait for another opportunity, reinforce your discipline, and above all, do not try to get even or revenge-trade.

This is the best way to lose even more and faster.

Refine your money-management rules, reduce your risks, and correct the flaws that your system could have.

This is the only way to recover and win in the end.

🔸7.Sloth

Nothing happens by chance.

You need to design a plan and trade following its rules.

Barely using vague hunches or intuition or other people's random calls is the same as tossing a coin, heads or tails, bulls or bears.

The only path to success is through a methodical and systematic approach.