#TradingMistakes101
🧠 TradingMistakes101 — In 2025’s dynamic markets, avoiding common pitfalls is more crucial than ever. One of the most damaging mistakes is overtrading, which leads to inflated costs, emotional stress, and irrational decisions—traders often find themselves chasing losses or riding the high of early wins, only to give it all back. Equally important is risk management—traders should limit risk to no more than 1–2% of capital per trade and always use stop-loss orders to guard against sudden drops. A solid trading plan—with clear entry, exit, and position sizing—is the backbone of consistent performance, helping avoid emotional reactions and impulsive trades. Finally, it's essential to avoid emotional and behavioral biases like fear, greed, and FOMO, which can lead to panic selling during dips or reckless buying during rallies, undermining long-term gains.
Bottom line: Trading isn’t a sprint—it’s a marathon. To thrive, focus on disciplined risk control, stick to your strategy, trade selectively, and stay emotionally detached.
