#TradingMistakes101
Here is a more detailed list of common trading mistakes and how to avoid them:
1. Lack of market analysis:
Error:
Not performing technical and fundamental analyses before trading.
How to avoid it:
Educate and understand the markets, analyze trends, identify support and resistance levels, and track key indicators.
2. No trading plan:
Error:
Trading without a defined strategy, objectives, and risk management rules.
How to avoid it:
Establish a trading plan with objectives, exit rules, loss limits, and appropriate risk management.
3. Overexposure:
Error:
Investing too large a portion of capital in a single position or in a limited number of assets.
How to avoid it:
Diversify your portfolio, manage risks with stop-losses, and adhere to the 3-5-7 rule (do not risk more than 3% of your capital per trade, more than 5% for leveraged trades, and more than 7% for long-term positions).