DCG AI Trading Pitfalls — What Every New Trader Must Avoid
90% of new traders lose money in their first year. The good news? 95% of AI trading failures are preventable with the right education. Here are the Top 6 Pitfalls that derail most traders (and the prompts that prevent them): ❌ Pitfall #1: Treating AI as a Crystal Ball - Blindly following AI recs without understanding risk - Hoping for effortless profits instead of learning - ✅ Solution: Use AI as a research assistant, not a fortune teller. ❌ Pitfall #2: Ignoring Risk Management - Oversizing trades because “AI said so” - Forgetting stops and account limits - ✅ Solution: Pre-set rules for position size, stops, drawdowns. ❌ Pitfall #3: Letting Emotions Override AI Analysis - FOMO, revenge trading, panic exits - ✅ Solution: Run “cooling-off” protocols + use AI for objective review. ❌ Pitfall #4: Asking AI the Wrong Questions - Vague prompts = vague answers - ✅ Solution: Always include account size, timeframe, risk tolerance, and desired analysis. ❌ Pitfall #5: Skipping Foundational Knowledge - Jumping straight to AI without basics - ✅ Solution: Build a 30-day learning curriculum before trading live. ❌ Pitfall #6: Trading Live Without Testing - Using real money before back-testing /paper trading - ✅ Solution: Back-test at least 2 years, paper trade for 3 months, track win/loss and drawdowns. 🛡️ Reality Check: Even the best AI gets trades wrong 40–50% of the time. Your job is to combine AI insights with risk management + human judgment. 📎 Download the full DCG AI Trading Pitfalls Guide below for: - Prevention prompts you can use daily - Step-by-step risk checklists - Emotional discipline tools - Back-testing & paper trading frameworks