Hosts Luke Moore, Sean Power, and Pete Ward break down the five most common mistakes retail traders make and share practical solutions to avoid them. Drawing from their extensive experience, they discuss poor risk management, overtrading, emotional biases, lack of trading plans, and unrealistic expectations.

Timestamps

00:00 - Introduction and overview

01:42 - Why traders make mistakes and how awareness helps

03:52 - Mistake #1: Poor risk management and position sizing

07:27 - Research on percentage-based stops

09:12 - Psychology of chasing losses

10:36 - Mistake #2: Overtrading and transaction costs

14:53 - How transaction costs affect trading performance

17:19 - Benefits of cooling-off periods after losses

17:58 - Mistake #3: Emotional biases and the disposition effect

20:17 - Banking gains and accepting losses

23:21 - Research on trading psychology

24:56 - Mistake #4: Lack of trading plan

28:16 - Statistics on trading plans

32:38 - Six essential components of a trading plan

35:04 - Mistake #5: Unrealistic expectations

37:35 - Reality vs. expectations in trading returns

42:18 - Summary of the five major trading mistakes

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