Trading Traps

Premature Entry

Entering a trade before proper confirmation

Premature entry is when a trader enters a position before all their entry criteria are met, usually driven by FOMO or impatience. This often results in being stopped out before the actual move.

How to Recognize

  • Entering before pattern completes
  • Ignoring confirmation signals
  • Acting on incomplete information
  • Entering during high volatility without setup

How to Avoid

  • Wait for candle close confirmation
  • Follow your trading plan strictly
  • Use alerts instead of watching constantly
  • Practice patience - missed trades are not losses