Top 5 #Mistakes Every Trader Must Avoid
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1. Trading Every Day — A Dangerous Habit
Not every day is profitable, and not every day is made for trading. The market is volatile and unpredictable, and forcing trades can lead to avoidable losses. Trading should be strategic — aim to survive with small, consistent wins rather than chase big profits that come with big risks. Understanding when not to trade is a key part of risk management.
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2. Overusing Margin and Leverage
Never use more than 35% margin and avoid leverage beyond 30%. High leverage amplifies both gains and losses, and most traders can't handle the drawdown or liquidation risk that comes with excessive leverage. Stay within a range you can afford to lose — capital preservation beats aggressive betting
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3. Ignoring Technical Analysis
Trading without technical analysis is like sailing without a compass. Learn to interpret the order book, volume trends, support/resistance levels, and price action. Proper technical analysis helps you anticipate market behavior and make informed entries and exits — not emotional ones.
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4. Trading Without a Clear Plan
Jumping into trades without a predefined strategy is a fast track to losses. You must set entry/exit points, stop-loss levels, and risk-reward ratios before you place a trade. A plan keeps you disciplined and prevents emotional decisions, especially during market turbulence.
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5. Letting Emotions Drive Decisions
Fear, greed, and FOMO (fear of missing out) are the biggest enemies of a trader. One emotional trade can wipe out weeks of gains. Stick to your analysis and strategy, don't chase losses, and never revenge trade. Emotional discipline is what separates successful traders from the rest.