#TradingMistakes101 Mistakes to Avoid in the Trading World

1. Trading Without a Plan

Entering the market randomly leads to losses.

✅ Have a clear plan that includes entry and exit points and risk management.

2. Overtrading

Too many trades cause stress and increased fees.

✅ Focus on quality, not quantity.

3. Neglecting Risk Management

Taking large risks in a single trade can wipe out your account.

✅ Do not risk more than 1-2% of your capital on a single trade.

4. Revenge Trading

Trying to quickly recover losses increases further losses.

✅ Take a break after a series of losses and reassess your strategy.

5. Weak Emotional Control

Fear and greed lead to wrong decisions.

✅ Rely on your plan, not your feelings.

6. Not Documenting Trades

Without a record, it's hard to learn from mistakes.

✅ Keep a trading journal to note the reasons for entry and exit and the results.