▲ 20 r/tradingpsychology+1 crossposts

What blows your account?

For me it's oversizing - My strategy is sizing up when there's a clear trend (I use a 5-min chart and the 20 EMA), and it works on most days (~80%). But the other 20% of days which are choppy/have fakeouts, take back an entire week's worth of profits - and sometimes even more. The choppy days cause me to size up even more to catch the real trend (and recover losses) - this has led to a lot of account failures.

I know the fix: size down and the losses get smaller.
But then my account doesn't move in a way that feels meaningful.

I'm genuinely curious - for others that have issues with account faliures, do we all run into the same issues of position sizing? Or are there other factors that lead to unfavorable trading reults in your accounts?

Not looking for strategies, just genuinely curious what makes people blow up and if it's the same pattern amongst us manifesting differently?

reddit.com
u/clearfractal — 3 days ago