The DIIO Public "Don't Do Dumb Things List" (DDDT for short!)

❌ 1. Don’t Trade Without a Plan

No plan = no edge. If you can’t explain why you’re in the trade and what conditions would stop you out, you’re gambling.

❌ 2. Don’t Trade Weak Setups

If your analysis lacks alignment across multiple factors like trends, volume, or support levels, sit it out. Forcing trades in unclear conditions erodes capital.

❌ 3. Don’t Size Up Without Proof

If you haven’t proven consistency with smaller positions, don’t increase risk. Position size should grow with proven strategy, not excitement.

❌ 4. Don’t Overtrade

More trades don’t equal more profits. Focus on high-quality setups only, and conserve mental and financial energy for the best opportunities.

❌ 5. Don’t Trade Against the Broader Market

If the overall economic or market environment is bearish, avoid chasing bullish trades. Align with prevailing conditions to avoid unnecessary headwinds.

❌ 6. Don’t Fade Strength or Weakness Blindly

Avoid shorting strong uptrends or buying dips in downtrends without solid evidence like reversal patterns or divergences.

❌ 7. Don’t Skip Your Pre-Trade Checklist

Always review key elements like momentum, risk-reward, and market context before entering. Unchecked boxes lead to avoidable losses.

❌ 8. Don’t Revenge Trade

One losing trade doesn’t need immediate “fixing.” Step away to reset—chasing recovery often compounds damage and emotional spirals.

❌ 9. Don’t Trade in Choppy, Range-Bound Markets

Avoid entries when price is oscillating without direction or clear structure. Wait for breakouts or trends to emerge.

❌ 10. Don’t Chase Missed Moves

If you missed the entry, let it go. FOMO leads to poor risk-reward; the market always offers new chances for disciplined traders.

❌ 11. Don’t Invest More Than You Can Afford to Lose

Always use risk capital only. Putting essential funds at stake creates emotional pressure and rash decisions.

❌ 12. Don’t Ignore Diversification

Spreading investments across assets reduces risk. Concentrating everything in one area amplifies potential wipeouts.

❌ 13. Don’t Follow Tips Without Your Own Research

Blindly acting on advice from others often leads to regret. Verify facts and align with your strategy first.

❌ 14. Don’t Let Emotions Drive Decisions

Fear and greed cloud judgment. Stick to rules to avoid panic selling or euphoric buying.

❌ 15. Don’t Neglect Stop-Loss Orders

Always set predefined exits to limit losses. Hoping a bad trade turns around is a recipe for disaster.

❌ 16. Don’t Average Down Without a Plan

Adding to losers can compound risks. Only do so if it fits a tested strategy with clear limits.

❌ 17. Don’t Trade on Borrowed Money Unless Experienced

Leverage amplifies both gains and losses. Beginners should avoid margin until they have a solid track record.

❌ 18. Don’t Overlook Transaction Costs

Fees and spreads eat into profits over time. Factor them in when planning trades or investments.

❌ 19. Don’t Chase Hype or Trends Blindly

Meme stocks or hot fads often crash. Base decisions on fundamentals, not social media buzz.

❌ 20. Don’t Forget to Review Past Trades

Learning from wins and losses builds improvement. Skipping journaling keeps you repeating errors.

❌ 21. Don’t Have Unrealistic Expectations

Trading isn’t a get-rich-quick scheme. Aim for steady growth, not overnight riches.

❌ 22. Don’t Over-Rely on Software or Tools

Algorithms aren’t foolproof. Use them as aids, but develop your own market understanding.

❌ 23. Don’t Overexpose a Single Position

Risking too much on one trade invites ruin. Cap exposure to a small percentage of your portfolio.

❌ 24. Don’t Overdiversify to the Point of Dilution

Too many holdings can water down returns. Balance variety with focus on quality.

❌ 25. Don’t Panic Sell During Volatility

Dumping assets at lows locks in losses. Stay calm and assess if fundamentals have changed.

❌ 26. Don’t Hide in Cash Indefinitely

Inflation erodes purchasing power. Re-enter markets thoughtfully when conditions improve.

❌ 27. Don’t Forget to Rebalance Your Portfolio

Drift from your allocation can increase risk. Periodically adjust to maintain your strategy.

❌ 28. Don’t Jump In Without Market Knowledge

Trading unprepared leads to quick losses. Educate yourself on basics before risking money.

❌ 29. Don’t Start with Insufficient Capital

Small accounts face higher proportional fees and risks. Build a buffer for sustainability.

❌ 30. Don’t Aim Only for Home Runs

Chasing big wins often means ignoring consistent smaller gains. Focus on base hits for long-term success.

❌ 31. Don’t Trade Options Without a Strategy

Complex instruments like options require plans. Random bets lead to rapid capital depletion.

❌ 32. Don’t Constantly Monitor Markets

Obsessive watching breeds overtrading. Set alerts and check in at planned intervals.

❌ 33. Don’t Follow Bad Advice from Social Media

Influencers may have agendas. Cross-verify and think critically before acting.

❌ 34. Don’t Rush Investments Needing Time to Grow

Pulling out too soon misses compounding. Patience is key for long-term holdings.

❌ 35. Don’t Invest Money You’ll Need Soon

Short-term needs belong in safe accounts. Markets can drop when you least expect it.

❌ 36. Don’t Ignore Tax Implications

Unplanned taxes can surprise you. Factor them into your strategy for net gains.

❌ 37. Don’t Trade While Distracted or Fatigued

Poor focus leads to errors. Only engage when mentally sharp.

❌ 38. Don’t Blame External Factors for Losses

Own your decisions. Excuses prevent learning and growth.

❌ 39. Don’t Neglect Risk-Reward Ratios

Entering trades with poor upside versus downside is inefficient. Aim for at least 1:2 or better.

❌ 40. Don’t Trade During Major News Without Preparation

Volatility spikes can whipsaw positions. Have a plan or sit out uncertain events.

❌ 41. Don’t Hold Losers Too Long Hoping for Recovery

Cut them early to free capital. Emotional attachment costs opportunities.

❌ 42. Don’t Underestimate Psychological Biases

Confirmation bias or overconfidence trips up many. Stay objective and humble.

❌ 43. Don’t Mix Trading Styles Inconsistently

Jumping between day trading and long-term investing confuses results. Pick and master one.

❌ 44. Don’t Ignore Economic Indicators

Data like GDP or interest rates influence markets. Stay informed for context.

❌ 45. Don’t Trade Illiquid Assets Casually

Low volume means poor fills and slippage. Stick to liquid markets unless specialized.

❌ 46. Don’t Forget Position Sizing Rules

Inconsistent sizing disrupts risk management. Use fixed percentages per trade.

❌ 47. Don’t Enter Trades Based on Gut Feel Alone

Intuition without data is guessing. Back hunches with evidence.

❌ 48. Don’t Neglect Broker Research

Hidden fees or poor execution matter. Choose platforms wisely.

❌ 49. Don’t Stop Learning After Initial Success

Markets evolve; complacency leads to downfall. Continuously educate yourself.

❌ 50. Don’t Trade to Impress Others

Bragging rights aren’t profits. Focus on your goals, not external validation.