#TradingMistakes101 One of the common traps is the tendency of novice traders to abandon their initial strategies and change their positions in response to unfavorable market movements. For example, a trader may panic and sell securities after a sudden drop in prices, only to regret their decision when the market recovers. This lack of adherence to a predetermined plan can lead to erratic behavior and inconsistent results. Without a solid foundation to guide their decisions, inexperienced traders are more susceptible to emotional biases and impulsive reactions, which can have detrimental effects on their overall performance.