#TradingMistakes101

Trading can be rewarding, but it's also filled with pitfalls that can quickly turn profits into losses. One of the most common mistakes is lack of a trading plan. Many beginners jump into trades based on emotion or hype without a clear strategy. This often leads to inconsistent results and unnecessary risks.

Another frequent error is overtrading—taking too many positions without solid setups. This typically stems from impatience or the desire to recover losses quickly. Instead, traders should focus on quality over quantity.

Ignoring risk management is also dangerous. Never risk more than a small percentage of your capital on a single trade. Using stop-loss orders and position sizing correctly can help protect your account from major drawdowns.

Emotional trading is a major culprit. Fear, greed, and frustration can cloud judgment. It's crucial to stay disciplined and stick to your plan, especially after a win or loss.

Finally, many traders fail to learn from their mistakes. Keeping a trading journal and reviewing trades regularly can reveal patterns and help improve future performance.

Avoiding these basic errors is essential for long-term success. In trading, survival is victory—and discipline is your best tool.