#TradingMistakes101 covers the most common mistakes made by traders, especially beginners. One of the biggest mistakes is emotional trading, where decisions are based on fear (FOMO – Fear Of Missing Out) or greed, rather than logical analysis. This often leads to buying at price peaks or selling in panic.
Another crucial mistake is the lack of a clear trading plan and proper risk management. Many operate without a defined strategy, without setting stop-loss limits or without diversifying their portfolios. This can result in significant losses and over-leveraging.