Top Mistakes to Avoid When Trading ES Futures
Trading ES futures offers huge opportunities—but also serious risks. Many beginners (and even experienced traders) make avoidable errors that lead to blown accounts, emotional stress, and inconsistent performance.
This guide highlights the top mistakes to avoid when trading ES futures, so you can stay disciplined and trade with confidence.
1. Overtrading
More trades ≠ more profit.
- Trading too frequently leads to fatigue, emotional decisions, and overexposure
- Stick to 2–4 high-probability setups per session
- Focus on quality, not quantity
Solution: Use a trade checklist to confirm each setup before entering
2. Ignoring Risk Management
Many traders place trades based on gut feelings and forget about capital protection.
- No stop-loss = unlimited risk
- Oversized positions = account blowout waiting to happen
- Risking too much per trade leads to large drawdowns
Solution: Always define risk before entering. Use stop-loss orders and proper position sizing.
3. Trading Without a Plan
Jumping into trades without a structured strategy is a recipe for disaster.
- Guessing or following random indicators causes inconsistent results
- Lack of rules = emotional trading
Solution: Create and test a simple strategy, then stick to it. Track your performance in a journal.
4. Revenge Trading
Trying to “win back” losses after a losing trade is dangerous.
- Leads to impulsive entries, oversized positions, and emotional burnout
- Often results in deeper losses
Solution: Step away after a loss. Take a walk or pause for the day.
5. Overleveraging Small Accounts
Just because your broker allows you to trade with $500 doesn’t mean you should.
- Trading full ES contracts with small capital = extremely high risk
- Losses can exceed your account balance
Solution: Start with Micro E-mini (MES) contracts until you build consistency.
6. Ignoring the Economic Calendar
News events like FOMC, CPI, or NFP cause high volatility.
- Unexpected spikes can hit stops or cause slippage
- Dangerous to open new positions before major announcements
Solution: Check the economic calendar daily and avoid trading right before major events.
7. Chasing Trades
Entering late after a breakout already happened is called “chasing.”
- Often leads to poor entries at the top or bottom
- Exposes you to sharp reversals
Solution: Wait for pullbacks, retests, or confirmation setups.
8. Relying Solely on Indicators
Indicators lag behind price. Relying only on them leads to delayed entries or false signals.
Solution: Combine price action with 1–2 trusted indicators like VWAP, RSI, or Moving Averages.
9. Not Reviewing Your Trades
If you don’t analyze your past trades, you won’t know what’s working.
- You’ll repeat mistakes
- You miss patterns in your behavior
Solution: Keep a simple trading journal and review it weekly.
10. Letting Emotions Control Decisions
Fear, greed, and frustration can override logic.
- Exiting too early
- Holding losers too long
- Skipping solid trades after a loss
Solution: Stick to your rules. Use automation (alerts, stop-losses) to remove emotion.
FAQs
Q1. What’s the biggest mistake new ES traders make?
Overleveraging and trading without a plan are the top two mistakes.
Q2. Should I avoid trading during economic news?
Yes, unless you are an experienced news trader. Volatility is unpredictable.
Q3. How do I stop revenge trading?
Set a daily loss limit. Step away from the screen after two consecutive losing trades.
Q4. Is it wrong to use indicators?
No, but don’t rely on them alone. Always confirm with price action.
Q5. What’s a good way to track my mistakes?
Use a spreadsheet or journaling app to log each trade and note what went right or wrong.
