Two Trading Mistakes I am Learning to Avoid
How patience and discipline turned my trades around—and might help you too.
Have you ever made a trading decision you immediately regretted? I certainly have—more times than I like to admit. But trading mistakes, when acknowledged and analyzed, often become our greatest teachers. This post is as much a reminder for me as it might be helpful for you. By confronting my trading mistakes head-on, I hope to continue improving—and maybe you'll recognize some similar pitfalls in your own trading.
First, let me clearly state: I'm having a good year. My trading account is up +177% and my investment account is up +69% in 2025 so far. But the journey hasn't been flawless. To sustain these returns, it's critical I don't repeat past mistakes. Here are two key errors I've been addressing, and the lessons they've taught me.
Mistake #1: Acting Too Early—The Power of Patience
You've probably heard the phrase, "let the market come to you." For years, I heard this advice but didn’t fully understand its importance. There's a world of difference between expecting something to happen and actually seeing it happen. Expectation is guessing, but seeing is factual.
Acting based purely on expectation is a common error—even if it sometimes yields positive results. This is known as "resulting"—judging the quality of a decision solely by its outcome. It feels intuitive, but it's actually a trap.
Take my recent trade with HOOD, for example. HOOD rose more than 200% in less than three months. I expected a slowdown or pullback early in its run. Had I acted on this expectation, I would've prematurely exited or even shorted HOOD—a costly mistake. Instead, I waited patiently, observing actual market behavior.
Similarly, the recent strong rally in the S&P 500 and NASDAQ tempted many traders—including myself—to anticipate a pullback. Yet, the market continued climbing. Waiting to clearly see a reversal, rather than predicting it, saved me from acting prematurely.
My trading system isn't about catching every move perfectly. It's designed to capture 60-90% of significant moves without unnecessary guesswork. Patience—waiting to "see," not just "expect"—is now central to how I trade.
Mistake #2: Deviating from My System—Staying Disciplined
Patience helps control eagerness; sticking to my system helps control greed. It's easy to get excited when experts on CNBC or X are highlighting stocks that are soaring. But when their recommendations don’t align with my system, taking action is usually a mistake—even if it sometimes pays off.
For example:
OSCR: I bought into the hype without fully understanding the healthcare sector dynamics. A sudden sector-specific news event caused the stock to drop 15% in a single day, forcing me to close at a loss.
CRCL: Despite recognizing its potential early, I hesitated too long due to hype concerns and missed a significant opportunity. I was overly cautious—another form of deviating from my proven approach.
MSTR: I never fully understood the Bitcoin treasury strategy behind the stock but got caught up in the excitement anyway. It cost me money. I've since realized it's vital to only trade what I truly understand.
These experiences reinforced the critical importance of staying disciplined and aligned strictly to my trading criteria. If a stock idea doesn't clearly match my system, it’s simply not a trade I should take.
Final Thoughts
Avoiding these two mistakes—acting prematurely based on expectation, and trading outside my proven system—is crucial to sustaining and improving my results. By acknowledging these errors openly, I'm committing myself to continued discipline and patience.
Hopefully, my experiences resonate and help you in your own trading journey. Remember, the goal isn't perfection; it's continuous learning and improvement.