5 MISTAKES That EVERY Beginner Makes in Trading (and Then Quits the Market)
1. Lack of a Trading Plan
Beginners often jump into trading without a clear strategy or rules. Without a plan, decisions become emotional and impulsive, leading to losses.
Fix: Create a trading plan outlining entry/exit rules, risk management, and position sizing.
2. Overleveraging
Using too much leverage amplifies both gains and losses. Beginners often use maximum leverage to chase big returns, but one wrong move can wipe out their account.
Fix: Use minimal or no leverage until you're consistently profitable.
3. Ignoring Risk Management
New traders often risk too much on a single trade. One or two bad trades can blow their entire account.
Fix: Risk only 1–2% of your capital per trade. Use stop-losses.
4. Chasing the Market
Beginners tend to chase price movements out of FOMO (Fear of Missing Out), entering late and exiting in panic.
Fix: Wait for clear setups that align with your strategy. Don’t chase.
5. Lack of Patience and Discipline
Many expect instant profits and get discouraged quickly. Emotional trading, overtrading, and lack of consistency lead to burnout and quitting.
Fix: Be realistic. Focus on learning, journaling your trades, and improving over time.
