#TradingTypes101 Common Trading Mistakes to Avoid
Trading can be rewarding, but even experienced traders fall into avoidable traps. Here are a few common mistakes that can cost you:
1. Lack of a Plan – Trading without a strategy is like sailing without a compass. Always have entry, exit, and risk management rules.
2. Overtrading – Taking too many trades or risking too much per trade often stems from impatience or greed. Quality over quantity wins in the long run.
3. Emotional Decisions – Fear and greed are the biggest enemies of consistency. Stick to your plan, not your feelings.
4. Ignoring Risk Management – Never risk more than you can afford to lose. Use stop-loss orders and position sizing wisely.
5. Chasing Losses – Trying to “make back” losses by taking bigger risks usually leads to more losses. Accept and learn from mistakes instead.
Successful trading is more about discipline and mindset than predictions. Learn continuously, stay calm, and protect your capital.
