#TradingMistakes101 Even experienced traders can fall into common traps that affect performance. A major mistake is trading without a clear plan: entering and exiting based on emotion rather than strategy. FOMO (fear of missing out) often leads to chasing rallies, resulting in losses. Over-leveraging is another danger, amplifying both gains and risks, especially in volatile markets. Ignoring risk management, such as not setting stop-losses, can quickly deplete portfolios. Many traders also rely too heavily on hype or social media tips instead of conducting proper research and analysis. Revenge trading—trying to recover losses impulsively—often leads to deeper setbacks. A lack of patience and constantly changing strategies can cloud judgment and reduce consistency.