Trading Mistakes

🚨 1. Overleveraging

What it is: Using borrowed money (margin) to make bigger trades than your account can support.

Why it’s deadly: A small move against you wipes out your entire capital or worse—puts you in debt.

Example: Trading with 20:1 leverage on a volatile asset like crypto or small-cap stocks.
🧠 2. Lack of Risk Management

What it is: Not using stop-losses, risking too much per trade, or not having a risk cap (e.g., % of capital).

Why it’s deadly: One bad trade can erase 10 good ones—or blow your account.

Golden Rule: Risk no more than 1–2% of your account on a single trade.
🎲 3. Revenge Trading

What it is: After a loss, trying to win it all back quickly with emotional, impulsive trades.

Why it’s deadly: You lose discipline, and it snowballs into bigger losses.
❌ 4. No Strategy or Edge

What it is: Randomly buying/selling based on gut feeling, social media tips, or hype.

Why it’s deadly: The market is structured to take money from undisciplined players.

Fix: Have a tested, backtested system—even a simple one.
📈 5. Failing to Adapt

What it is: Using one strategy blindly without adjusting for market conditions (e.g., trending vs. ranging).

Why it’s deadly: Strategies stop working; if you can’t evolve, your performance will tank.
🤯 6. Psychological Blow-Up

What it is: Letting fear, greed, or ego dominate your trading decisions.

Why it’s deadly: Trading becomes irrational, and you make emotionally-driven errors.
🔒 7. Neglecting Capital Preservation

What it is: Thinking you need to double your money fast instead of staying in the game.

Why it’s deadly: You burn out financially before learning enough to succeed.
🔄 8. Overtrading

What it is: Taking too many trades per day/week out of boredom or FOMO.

Why it’s deadly: You rack up fees, increase exposure, and reduce focus.
🕵️ 9. Ignoring Risk Events

What it is: Trading through earnings reports, economic data, or major geopolitical news without planning.

Why it’s deadly: Price can gap massively, blowing past your stops.
✅ The Good News

Avoiding these mistakes doesn’t require genius—just discipline, education, and patience. Many great traders failed early but survived long enough to learn

#TradingMistakes101