The Secret to Trading Success: It's Not About Chasing Profits, But Avoiding Mistakes
•By Maher Alias
Artikel ini juga tersedia dalam Bahasa Melayu
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"In the world of trading, it is not the smartest who wins, but the one who makes the fewest mistakes."
Last year, I had a chat with an acquaintance — an ordinary retail trader who started trading on Bursa Malaysia during the 2020 bull run. At that time, almost every stock was going up, and he began to feel confident in his abilities. He said:
"I made RM5,000 profit in just one month. It felt like every stock I bought would surely go up."
But that confidence turned into disappointment. When the market started falling, he began averaging down on losing stocks, did not set stop losses, and believed prices would bounce back. Within a few months, his accumulated losses reached RM80,000.
"I had no plan. I was just winging it. Glanced at a chart, read a forum post, and bought straight away. When I lost money, I blamed the market, blamed other people''s ''goreng'' (market manipulation)."
His story is not unusual. Many new traders get trapped in the same cycle — trading without rules, following emotions, and repeating the same mistakes.
And this is where the crucial lesson emerges: success in trading does not come from a ''magical'' strategy, but from the discipline to avoid making mistakes you know you should not make.
The main problem? He had no rules. When to buy? When to sell? How much risk can be tolerated? None of this was clear.
Without a system, you will make decisions based on feelings, not strategy. And that is the recipe for massive losses — exactly what happened to him.
Trading rules act like Waze (GPS navigation). When you have rules, you know your direction. Without them? You follow the wind — buy when others say buy, sell when panic sets in, and repeat the cycle.
Many who lose money start blaming the market or the ''sifu'' (guru) who gave the call. But when we ourselves press the buy button, that is our responsibility. The learning process only begins when we are brave enough to say:
"I made a mistake. How can I avoid this next time?"
Without a plan, trading becomes impulsive. A trading plan does not need to be complex — but it must be clear. You need to know when to enter, when to exit, and how much you are willing to lose. That alone is enough to reduce many common mistakes.
The problem with retail traders is usually not a lack of knowledge — but a lack of discipline to follow what they already know. My friend knew the market was declining, but still refused to sell. "It''s a pity to let go," he said. In the end, the losses grew even larger.
That RM80,000 was essentially a very expensive tuition fee. But if he does not change his approach, that tuition fee will have been for nothing. Making mistakes is normal. But repeating the same mistakes — that is negligence.
Are you the type who follows a system, or follows your gut? There is nothing wrong with either, but it is important to know your own style. If you are an emotional type, mechanical trading can help you maintain control. If you are the flexible type, ensure you have strong discipline.
The market is constantly changing. Last year''s strategy may not be relevant this year. Do not get complacent. Successful traders are students who never stop learning.
My friend eventually stopped trading for a while. He said he was tired of losing. But I hope he will return — this time with a clear plan, stronger discipline, and the awareness to avoid old mistakes.
For those of you still trading, remember:
- Focus on the process, not just the results.
- Avoid repeating the same mistakes.
- Take responsibility for every trade.
- Keep learning and improving yourself.
Success is not about who is the fastest — but who never stops learning and correcting their mistakes.
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The most common mistakes include not setting stop losses, overtrading, revenge trading after losses, and investing without a clear trading plan. These mistakes typically stem from uncontrolled emotions rather than a lack of market knowledge.
Risk management ensures your capital remains intact so you can continue trading. Even if you profit 9 times in a row, a single large uncontrolled loss can wipe out all previous gains. Successful traders typically only risk 1-2% of their capital on each trade.
Start by writing a complete trading plan that includes entry and exit criteria, position sizing, and daily loss limits. Follow the plan without compromise and record every trade in a journal for later analysis. Discipline is built through consistent practice, not merely good intentions.
Yes, but it requires proper learning from the start. Traders who have a mentor or follow structured programmes can typically avoid the costly mistakes made by self-taught traders. Focus on the learning process rather than immediate profits.
Success in trading starts with the right mindset — protecting your capital and avoiding mistakes. Continue to enhance your investment knowledge to become a more consistent and disciplined trader.
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