#TradingMistakes101 Trading_Errors_101 – Common Mistakes and How to Avoid Them**

Trading can be profitable, but even professional traders make mistakes. Here are the most common trading mistakes and how to fix them:

### **1. Lack of a Trading Plan**

❌ **Mistake:** Entering trades without a clear strategy.

✅ **Fix:** Define entry and exit rules, risk tolerance, and objectives before trading.

### **2. Overleveraging**

❌ **Mistake:** Using high leverage leads to loss of capital.

✅ **Fix:** Don’t risk more than 1-2% of capital on a single trade.

### **3. Revenge Trading**

❌ **Mistake:** Trying to recover losses with random quick trades.

✅ **Fix:** Take a break after consecutive losses and stick to your plan.

### **4. Neglecting Stop-Loss Orders**

❌ **Mistake:** Leaving losing trades open in hopes they will recover.

✅ **Fix:** Always use stop-loss to limit risks.

### **5. FOMO Trading (Fear of Missing Out)**

❌ **Mistake:** Buying or selling just because everyone else is doing it.

✅ **Fix:** Wait for confirmation instead of getting swept up in the hype.

### **6. Overtrading**

❌ **Mistake:** Opening too many trades out of boredom or greed.

✅ **Fix:** Quality is more important than quantity – wait for strong opportunities.