Undercapitalization, excessive leverage and poor risk management. This kills traders all the time, you could be correct but you blow up on the way to victory on one temporary drawdown. IF your sailboat cannot handle choppy waters on the way to your destination you have no business getting off the dock to begin with.
This ranks as one of the most naive posts ever on ET. You don't try to predict it (which is what "timing the market or picking turns" is), you are unwilling to monitor it, but you are willing to make trades in the market and walk away while your "stop loss" may or may not get you out in a fast or chaotic market
Relying on a single edge to be profitable and not accounting for market changes over a period of time. Other silent and underestimated risk can be having a tunnel vision of markets. Best, Chris
Thanks for reminding me of something I sometimes forget. Risk: Knowing when your strategy no longer works.
Yes, I'm willing to risk a flash crash every once in a blue moon but I sure as hell aint willing to lose my health, well-being and sanity for a few extra E-Mini points. Naive maybe, but its my story and I'm sticking to it.
For me trading is a full time business. If you are trading full time in lieu of a career; you may be risking losing a career or the professional development that comes from one. Sitting in front of a computer 12hrs a day staring at charts for a couple of years is not exactly something you want to put on your resume. All the more reason to succeed at this business if you decide to undertake it.