#TradingMistakes101 Trading mistakes are common, especially for beginners, but even experienced traders can fall into bad habits. Here are some of the **most common trading mistakes** and how to avoid them: Not Having a Trading Plan  Trading without a clear strategy leads to emotional decisions. 

Solution: Define your entry/exit rules, risk tolerance, and goals before trading. 

Overtrading (Taking Too Many Trades 

   Chasing every small move increases risk and commissions. 

  Solution: Stick to high-probability setups and avoid impulsive trades.  Ignoring Risk Management

   - Risking too much on a single trade can wipe out an account. 

   -Solution: Follow the 1-2% rule (never risk more than 1-2% of capital per trade). 

Letting Losses Run (Not Using Stop-Losses Hoping a losing trade will reverse often leads to bigger losses.  Solution: Always use a stop-loss and stick to it.  Taking Profits Too Early (Fear of Losing Gains 

   - Closing winning trades too soon limits profits. 

   Solution: Use trailing stops or take partial profits while letting winners run. 

Revenge Trading (Trying to Recover Losses Quickly 

   - Emotional trading after a loss leads to more mistakes. 

   -Solution: Take a break after a losing streak and stick to your plan. 

Not Adapting to Market Condition 

   - Using the same strategy in trending vs. choppy markets can fail. 

   - Solution: Adjust strategies based on volatility and market structure.  FOMO (Fear of Missing Out 

   - Jumping into trades late because of hype (e.g., meme stocks, crypto pumps). 

   - Solution: Wait for pullbacks instead of chasing pumps. 

Overleveraging (Using Too Much Margin 

   - High leverage can lead to massive losses in seconds. 

   - Solution: Use conservative leverage eg 2-5x, not 50-100x

Ignoring Trading Psychology Greed, fear, and overconfidence lead to poor decisions.  Solution: Keep a trading journal to track emotions and mistakes.  How to Improve? Backtest & Paper Trade before riskingreal money. 

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