{"id":12003,"date":"2024-06-28T09:14:41","date_gmt":"2024-06-27T23:14:41","guid":{"rendered":"https:\/\/bettersystemtrader.com\/?p=12003"},"modified":"2024-06-28T09:14:44","modified_gmt":"2024-06-27T23:14:44","slug":"5-common-trading-traps-and-how-to-avoid-them-with-laurens-bensdorp","status":"publish","type":"post","link":"https:\/\/bettersystemtrader.com\/5-common-trading-traps-and-how-to-avoid-them-with-laurens-bensdorp\/","title":{"rendered":"5 common &#8220;trading traps&#8221; and how to avoid them &#8211; with Laurens Bensdorp"},"content":{"rendered":"\n<p>Most traders lose money because of simple \u201ctrading traps\u201d.<\/p>\n\n\n\n<p>Here\u2019s 5 common traps that can destroy traders, and how to overcome them for more consistent (and confident) trading:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Get Rich Quick Trap<\/strong><\/h3>\n\n\n\n<p>Humans have a tendency to want to get rich quickly.<\/p>\n\n\n\n<p>If your position size is too large, you\u2019ll likely suspend trading during your biggest drawdown.<\/p>\n\n\n\n<p>Understand the power of compounding over time.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe title=\"Trying to get rich quickly in trading is a trap\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/m_NjxzmA-0M?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Overestimation Trap<\/strong><\/h3>\n\n\n\n<p>Your largest drawdown is in the future.<\/p>\n\n\n\n<p>Whatever you think you can handle in volatility and drawdowns, cut it in half. Do not overestimate your abilities.<\/p>\n\n\n\n<p>Be a risk manager first, stay in the game.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe title=\"The goal of trading is to stay in the game\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/WjclVyONCEE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Equity Curve Trap<\/strong><\/h3>\n\n\n\n<p>Don\u2019t just use backtest reports for the beautiful equity curves.<\/p>\n\n\n\n<p>Zoom in to understand when your strategy is supposed to make money and when it is likely to lose.<\/p>\n\n\n\n<p>That knowledge will make your life so much easier.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe title=\"analyzing backtests to understand live trading experience\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/HSVsK_OSefA?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Excitement Trap<\/strong><\/h3>\n\n\n\n<p>Traders should be completely detached from day to day results.<\/p>\n\n\n\n<p>That&#8217;s only possible by lowering risk to a level you\u2019re truly comfortable with. Trade execution should be boring, not exciting.<\/p>\n\n\n\n<p>Be a risk manager first, trader second.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe title=\"Trade execution should be boring\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/wuwKY1DeOlE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The \u201c1 and Done\u201d Trap<\/strong><\/h3>\n\n\n\n<p>A single trading strategy won\u2019t perform well all the time.\u00a0<\/p>\n\n\n\n<p>Don\u2019t rely on one strategy for profits.<\/p>\n\n\n\n<p>Diversify for consistency:<\/p>\n\n\n\n<p>-> trade Long and Short<\/p>\n\n\n\n<p>-> mix strategy types -> Trend Following vs Mean Reversion<\/p>\n\n\n\n<p>-> vary strategy rules<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe title=\"3 steps to add diversification to your trading\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/Q30iAJ1fNvY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Full Interview<\/h3>\n\n\n\n<p>Watch my full discussion with Laurens Bensdorp:<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe title=\"Confident Consistent Trading - Laurens Bensdorp\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/W4o_LxVpVKI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.youtube.com\/channel\/UCXtFh3dcGQ1wfORL1tZxKrQ\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Click here to check out the BST YouTube channel for more great trading content.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most traders lose money because of simple \u201ctrading traps\u201d. Here\u2019s 5 common traps that can destroy traders, and how to overcome them for more consistent [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11992,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[20,470],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts\/12003"}],"collection":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/comments?post=12003"}],"version-history":[{"count":17,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts\/12003\/revisions"}],"predecessor-version":[{"id":12020,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts\/12003\/revisions\/12020"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/media\/11992"}],"wp:attachment":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/media?parent=12003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/categories?post=12003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/tags?post=12003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}