The most common ways to lose everything:
- Constant attachment to one coin, narrative, or position.
- Never taking profits (or always transferring those profits into other positions, never cashing out).
- Moving targets higher/lower when the price moves in your favor.
- Buying the dip/shorting the breakout using leverage and without tight stops.
- Adding to losing trades without a pre-defined maximum risk allocation.
- Overtrading core positions or trading with leverage out of boredom.
- Not understanding that conditions have changed when your setups stop working, and instead continuing to trade as before without adapting.
- Chasing your record PnL with revenge trading + setting arbitrary portfolio goals.
- Developing a god complex (due to a short-term winning streak), believing you can never be wrong.
- Adjusting your lifestyle and spending as soon as you make a few successful trades + assuming you can always make X amount of money trading (conditions change, so your extrapolation is meaningless).