#TradingMistakes101 Common Basic Mistakes

Here are some of the main mistakes referred to as "trading mistake 101":

1. No Trading Plan

> Entering the market solely based on "feeling," following others, or FOMO.

Not knowing when to enter or exit.

Not knowing how much risk can be tolerated.

Not using a clear entry/exit strategy.

2. Overtrading

> Opening positions too often due to overconfidence or wanting to make quick profits.

Trading too much in a day or all at once.

Increasing risk without strong reasons.

3. Not Setting Stop Loss

> Assuming “the price will definitely come back” and holding onto losing positions.

Can lead to significant losses.

Damages psychology and trading consistency.

4. FOMO (Fear of Missing Out)

> Buying assets out of fear of missing a price rally.

Usually entering at peak prices.

Vulnerable to getting stuck and panicking to sell.

5. Not Managing Risk

> Putting all capital into one trade without diversification or money management.

Not knowing the risk/reward ratio.

Not limiting maximum losses per trade.

6. Greedy When Profiting

> Not taking profits and hoping the price will continue to rise.

Profits vanish when the market reverses.

Emotions control decisions.

7. Not Learning from Mistakes

> Repeating the same mistakes because of not recording/reflecting on previous trades.

Not having a trading journal.

Not evaluating failed strategies.