The Eighth Cardinal Mistake:
INCREASING YOUR COMMITMENT WITH SUCCESSOne of the most dangerous mistakes you can make in trading commodities is to increase your exposure, as you become more successful. Just by being successful you will risk more dollars per trade because you have more money. But, because you have more money (and confidence) when successful, you are also likely to take larger percentage risks. Not surprisingly, this ruins more futures traders than a series of small losses.
You can overcome this mistake by not allowing your percentage commitment to increase as you realize profits and by maintaining your stop/loss discipline.Next: The Ninth Cardinal Mistake: Overtrading Your Account