#TradingMistakes101 Trading_Errors_101 – Common Mistakes and How to Avoid Them**

Trading can be profitable, but even professional traders make mistakes. Here are the most common trading mistakes and how to fix them:

### **1. Lack of a Trading Plan**

❌ **Mistake:** Entering trades without a clear strategy.

✅ **Fix:** Define your entry and exit rules, risk tolerance level, and goals before trading.

### **2. Overuse of Leverage**

❌ **Mistake:** Using high leverage leads to loss of capital.

✅ **Fix:** Do not risk more than 1-2% of your capital on a single trade.

### **3. Revenge Trading (Seeking Revenge on the Market)**

❌ **Mistake:** Trying to recover losses with random quick trades.

✅ **Fix:** Take a break after consecutive losses and stick to your plan.

### **4. Neglecting Stop-Loss Orders**

❌ **Mistake:** Keeping losing trades open in hopes they will recover.

✅ **Fix:** Always use a stop-loss to limit your risks.