How do you review a trade you took by mistake?

A fat-finger entry, a wrong direction, a forgotten stop — execution mistakes happen to everyone. The review question isn't "why did the market do that" but "which check would have caught this".

How do you review a trade you took by mistake? — central bank rate path diagram
A central bank's policy rate path across recent meetings

Share:

  • your most memorable execution mistake
  • the check you added afterwards
  • how you keep mistakes from becoming self-punishment
How do you review a trade you took by mistake? — risk-reward diagram
A risk-reward ratio of 1 to 2

The order types guide covers the mechanics that prevent the common ones.

Background: Market, limit and stop orders: which order type to use

The order types on a trading platform decide when and at what price you enter or exit. What each one does, and the mistakes that cost traders money.

What is the difference between a buy limit and a buy stop?

A buy limit is placed below the current price to buy on a dip. A buy stop is placed above the current price to buy if the price breaks higher.

Does a stop-loss guarantee the exit price?

No. A standard stop-loss becomes a market order when triggered and can fill beyond its level in a gap or fast market. Guaranteed stops, where offered, cost extra.

Read the full guide

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