#TradingMistakes101 One of the biggest mistakes new traders make is chasing the market. You see a stock suddenly spike or a crypto coin rally hard, and FOMO kicks in. Without a plan, you jump in at the top—only to watch it reverse. This emotional decision-making, not based on strategy or analysis, is how many accounts get blown up.
Another common error? Overleveraging. Just because your broker lets you trade with 10x margin doesn't mean you should. When a small move against your position can wipe you out, you're not trading—you’re gambling.
If you don’t have a clear entry, stop-loss, and profit target before entering a trade, you’re setting yourself up to fail. Trading isn’t about being right every time—it’s about managing risk and staying disciplined.
Slow down, plan your trade, and trade your plan.