Common Mistakes New Palladium Traders Make
Palladium futures destroy beginners because PA doesn’t behave like a normal market. Thin liquidity, violent spikes, and oversized ATR make every mistake expensive. These are the traps almost every new PA trader falls into — and the ones you need to avoid if you want to stay solvent.
Mistake #1: Treating PA Like Gold or Silver
New traders assume PA is just “another metal,” so they size it like GC or SI and use the same indicators. That’s how accounts die.
- PA jumps between liquidity pockets
- Signals lag because the book is unstable
- Volatility isn’t rotational — it’s violent
This misunderstanding ties into the core issues covered in why PA trades violently.
Mistake #2: Using Tight Stops
Tight stops are suicide in Palladium. PA will skip right over them and fill you several levels away.
- Stop-hunts are common in LVNs
- Volatility wipes out fixed-width stops instantly
- One candle can exceed your entire risk plan
Stop placement requires structural awareness, not lazy ATR multiples — see PA risk management.
Mistake #3: Ignoring Liquidity Zones
Most beginner losses happen because traders enter directly into LVNs without knowing it. PA punishes that with immediate slippage and instant reversals.
- LVNs are trap zones
- HVNs create stable rotations
- Thin pockets distort every entry
Liquidity mapping is explained in PA liquidity structure.
Mistake #4: Trading During the Wrong Hours
PA liquidity changes dramatically depending on the session. Beginners trade whenever they feel like it, which is the fastest way to get blindsided.
- Dead zones cause random spikes
- RTH opens create whipsaw volatility
- Pre-roll periods destabilize the order book
The safest windows are laid out in best times to trade PA.
Mistake #5: Overconfidence After One Good Trade
PA gives traders one clean win, then takes back double. The moment a beginner sizes up after a lucky entry, they get caught in a squeeze and blown out.
- PA punishes impatience
- ATR expansion is always lurking
- Bad trades pile up fast when sizing is too big
Mistake #6: Assuming PA Trends Smoothly
PA doesn’t trend like ES or CL. It trends violently, pauses unpredictably, then rips again. Beginners chase breakouts, get trapped, and reverse their P/L instantly.
- False breakouts are common
- Trend legs jump, not march
- Retracements overshoot constantly
Final Takeaways
Palladium futures punish inexperienced traders because the contract is thin, volatile, and unforgiving. Most beginner mistakes come from treating PA like a stable market. If you size small, respect liquidity, and avoid trading during the worst hours, you avoid the traps that blow up almost everyone who touches PA for the first time.