#TradingMistakes101

Here are common trading mistakes, particularly relevant in volatile markets like crypto, stocks, or forex – explained in over 100 words:

1. **Lack of a Plan & Strategy:** Trading without clear entry/exit points, profit targets, or stop-losses is gambling. Emotional decisions replace logic, leading to impulsive buys and panic sells.

2. **Ignoring Risk Management:** This is the biggest killer. Risks include:

* **No Stop-Losses:** Letting losing positions run indefinitely, hoping they'll recover, often leading to catastrophic losses.

* **Over-leveraging:** Using excessive margin or loans amplifies gains BUT magnifies losses exponentially. A small price move against you can wipe out your account.

* **Risking Too Much Per Trade:** Putting a large percentage of capital into a single trade violates diversification principles.

3. **Emotional Trading (FOMO & Revenge Trading):**

* **FOMO (Fear Of Missing Out):** Chasing a rapidly rising asset because everyone else is, often buying near the top just before a correction.

* **Revenge Trading:** Trying to immediately recoup losses by making impulsive, high-risk trades fueled by anger or frustration, often leading to further losses.

4. **Overtrading:** Constantly entering and exiting positions, chasing every perceived opportunity. This increases transaction fees, taxes (where applicable), and the likelihood of mistakes. Patience is key.

5. **Neglecting Research (DYOR Failure):** Blindly following tips, influencers, or hype without understanding the asset, its fundamentals, technology, market conditions, or tokenomics. "Do Your Own Research" (DYOR) is crucial.

6. **Chasing "Hot Tips" & Hype:** Acting on unverified information from social media, forums, or "gurus." Much hype is manufactured to pump prices before insiders dump their holdings.

7. **Failing to Adapt:** Markets change. Strategies that worked in bull markets often fail in bear markets or sideways action. Refusing to learn or adjust leads to repeated losses.