
How To Spot 9 Bad Trading Habits & Experts Tips To Fix It
In the trading world, success is about more than just having the best trading strategy or the sharpest technical skills. Often, our habits—those ingrained behaviours and tendencies—determine whether we consistently turn a profit or get stuck in a cycle of frustration. The problem is that most traders don't realize when their habits are hurting their results.
So, how do you spot the bad habits that need improvement? And, more importantly, what can you do to break bad trading habits?
Let's examine some of the most common bad stock trading habits traders develop that can derail success and explore strategies from experts to improve them.

1. Inconsistent Results? Time to Look at Your Process
If your trading results swing wildly from profit to loss, it's time to evaluate your consistency. Consistent trading performance often points to consistent habits.
Are you changing strategies too often? Do you sometimes follow your trading plan and other times deviate based on how you "feel"? If this is the case, you're likely focusing too much on the money and need to shift your focus to the process.
How to fix it to develop good trading habits:
You can start by developing a clear, repeatable trading plan outlining your entry, exit, and risk management criteria. Once the plan is in place, sticking to it is challenging, especially when emotions run high.
A simple solution? Document each trade and review whether you followed your strategy or let emotions influence your decisions. Consistency is built by following a plan, not changing it based on the day's market mood.
Pro Tip: We all want to "make money" as traders. In order to give ourselves a chance to focus on the "process" of trading rather than the "results" of trading requires limiting the emotional connection we have to the "money." Here are some things you can start doing today to give yourself a chance:
Change your trading account dashboard or trade management display to show points instead of currency.
Reduce your risk per trade to a point where you have "no emotional connection" to what you win or lose. I've had to lower my risk by as low as $10 per trade to break my emotional connection to money; now, my current barrier is $1000. As long as I stay below this level of risk per trade, I manage my emotions well. Cross that line, however, and I'm back to square one… personal development isn't a one-and-done. It's a journey.
Practice in a simulated environment, preferably one that allows for real-time playback, which helps develop a "feel" for market development.
2. Are your emotions driving your trades as a trader?
Fear, greed, FOMO (Fear of Missing Out), and revenge trading—these emotional triggers are some of the biggest obstacles to trading success. If you jump into trades without proper analysis or chase losses by making impulsive trades, emotions are likely in control.
How to fix it to reduce risk on any given trade:
Step 1: Acknowledge when you're making decisions based on emotions rather than data. This awareness alone is a powerful first step.
Step 2: Create emotional rules for your trading. For example, if you lose two trades in a row, take a 15-minute break to cool off before re-entering the market. Or, if you feel anxious about missing a trade, give yourself permission to sit it out unless all your pre-set criteria are met.
Documenting these emotional triggers in a trading journal can help you see patterns over time. With practice, you'll become better at recognizing when emotions influence your decisions and develop the discipline to act based on your strategy, not your feelings.
3. Are You Overtrading?

We've all felt like you "need to trade constantly" to be successful. However, overtrading—making too many trades per day—often leads to unnecessary losses. This is typically a sign of impatience, boredom, or a belief that more trades equals more profit. Not only does this lead to unnecessary losses, but often, you're not prepared when the "great trade" comes along. You end up taking a lot of mediocre trades, while missing all the amazing ones.
How to fix it to stop loss:
Focus on quality over quantity—only trade when your strategy signals a high-probability setup. Overtrading often stems from a need for more patience, so remind yourself that the best opportunities are worth waiting for. When you feel the urge to trade without a straightforward setup, take a break and review your past trades to see if overtrading has cost you profits.
4. Ignoring Your Trading Plan? It's Time to Commit

Do you have a well-defined trading plan but need help following it? You're likely sabotaging yourself if you frequently ignore your rules, enter trades early, skip stop-losses, or exit too soon.
How to fix it to avoid bad trades:
For a successful trading experience set strict rules and stick to them. Your trading plan is your roadmap to success, and deviating from it increases your risk. One strategy is to treat each trade like a business decision: if the setup doesn't meet your criteria, you don't engage, period. Over time, committing to your plan will build discipline and keep you accountable. Think of it this way: imagine you own a car dealership. Your "job" is to facilitate the trade of automobiles. Someone comes to you and wants to buy a couch from you; you say, "No, I don't sell furniture." You're a car salesperson… stick to your specialty.
5. Is Your Risk Management Out of Control?
One of the most common mistakes in trading is poor risk management. Whether you risk too much per trade or move your stop-loss in hopes of avoiding a loss, failing to apply the right risk management techniques effectively will erode your account over time.
How to fix it:
Make a trading plan where you set clear risk parameters before you trade. Know exactly how much you're willing to lose on any given trade (usually at most 1-2 % of your account). Make use of stop-loss orders and stick to them—don't move them in a way that increases risk once the trade is active, and be cautious when moving them to remove the risk that you're doing it for technical reasons rather than emotional ones. You'll find that protecting your capital is just as important as making gains.
6. Are You Prepared? Or Trading on a Whim?
If you jump into trades without doing your homework—such as analyzing market trends, checking support and resistance levels, or understanding the day's market sentiment—you're trading on a whim. This lack of preparation almost always leads to poor results.
How to fix it for a good trading experience:
To improve your trading performance, always take the time to prepare before each trading session. Check the markets, identify potential setups, and write out your game plan. Trading is like any other profession—it requires consistent preparation, sticking to a good trading plan, and focus to succeed. Create a pre-trade checklist to remind you of the steps you need to take to give you that "big picture." Follow this checklist until it becomes a habit.
7. Chasing Unrealistic Returns? Time to Get Grounded
It's easy to believe that you can double your account in a short time with just a few great trades. However, chasing unrealistic returns often leads to over-risking and emotional trading.
How to fix it:
Set realistic goals for yourself. Successful traders know consistent, small gains are more sustainable over the long run than big, risky bets. If you aim for steady growth, you'll avoid the emotional highs and lows of chasing huge profits. Our motto at Push Button Trading is "You don't have to win every time, you have to win over time."
8. Do You Take Time for Self-Assessment?
Many traders neglect one of the most critical aspects of success: self-assessment. If you don't regularly review your trades, mindset, and emotions, you're missing out on valuable insights into what's working and what needs improvement.
How to fix it:
Make self-assessment part of your routine. Use a trading journal to reflect on your trades and your emotional state during trading. Review it regularly to identify patterns that may be holding you back. The more you know about your tendencies and triggers, the better you'll become at managing them in the future.
9. Neglecting Rest? Your Brain Needs a Break

Trading is mentally demanding, and failing to take breaks can lead to burnout, decreased focus, and more impulsive decisions. If you find yourself trading when tired or stressed, it's a sign that you're not giving your brain the downtime it needs.
How to fix it:
Schedule regular breaks throughout your trading day. Step away from your screen after each session or a series of trades, stretch, and clear your mind. Rested traders make better decisions—it's that simple.
Pro Tip: I tend to get very focused when I tackle a task. If you're like me, time can fly by. Before you know it, half the day has gone by. I've learned to set an alarm to break my attention enough for me to recognize I need to take a break. Try the Pomodoro Technique to utilize fixed intervals of time for focused work. I have a timer widget built right into my Notion trading journal.
Final Thoughts: Build Better Habits, Build Better Results
Improving your trading habits takes time and self-awareness, but the rewards are worth it. By recognizing the signs of poor habits—whether it's emotional trading, overtrading, or inconsistent discipline—you can begin to make changes that lead to more consistent results.
Trading success doesn't come from flashy strategies or quick wins; it comes from steady, disciplined habits and a commitment to continuous improvement. Keep working on your technical skills and mindset; you'll see long-term gains.
Ready to Improve Your Trading Habits?
Consider joining one of our 12-month mentorship programs, where we work on building your technical skills and trading psychology. With small group classes and personalized guidance, we'll help you refine your habits and achieve consistency in your trading. Visit our website [www.pushbuttontrading.co/education] to learn more.