#TradingMistakes101 Here are the main mistakes in trading and how to avoid them:
1. Lack of a trading plan and strategy
Mistake: Many traders start trading without a clear plan, relying on intuition, rumors, or emotions.
Consequences: Chaotic trades, lack of understanding of when to enter or exit, leading to uncontrolled losses.
How to avoid:
* Develop a trading plan: Define your strategy (e.g., scalping, day trading, swing trading), assets to trade, time frames, indicators, entry and exit criteria.
* Stick to the plan: Discipline is the key to success. Do not deviate from your plan under emotional pressure.
* Keep a trading journal: Record all your trades, reasons for entry/exit, results, and your emotions. This will help identify patterns and mistakes.
2. Ignoring risk management
Mistake: Risking too large a portion of the deposit on one trade, not using stop-losses.
Consequences: Rapid capital loss if the market goes against you.
How to avoid:
* Set the risk size per trade: Do not risk more than 1-2% of your deposit on a single trade.