#TradingMistakes101
Avoiding common mistakes is the key to success in trading. Here’s what to pay attention to:
1. **Emotional Trading:** Making decisions based on fear (FOMO) or greed leads to impulsive trades and losses. Always stick to your plan.
2. **Lack of Strategy:** Trading without a clear plan for entry, exit, and risk management is a gamble, not an investment. Create a strategy and stick to it.
3. **Insufficient Risk Management:** Not setting stop-losses or risking too large a portion of your capital in one trade puts your entire portfolio at risk.
4. **Overtrading:** Frequent trades with low profit potential only increase commissions and lead to fatigue. Quality is more important than quantity.
5. **Chasing "Pumps":** Entering an asset that has already sharply risen often means buying at the peak and selling at a significant loss. Be skeptical.
Successful trading is discipline and continuous learning.
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