#TradingMistakes101 One of the biggest mistakes in trading is neglecting risk management. Many traders only focus on potential profits, overlooking the importance of protecting capital. Not setting stop-loss orders or risking too much in each trade can lead to catastrophic losses. Always use a risk-reward ratio, such as 1:2, to ensure that potential profits outweigh losses. Never risk more than 1-2% of your account on a single trade. By prioritizing capital protection, you will stay in the game longer. Consistent risk management turns trading into a sustainable endeavor, helping you avoid emotionally-driven decisions and catastrophic account shocks.