#TradingMistakes101

Emotional Trading

Mistake:

Letting fear, greed, or overconfidence dictate decisions, such as holding losing trades too long hoping for a reversal or chasing profits after a win.Solution: Maintain discipline by following your trading plan. Use stop-loss and take-profit orders to automate exits and reduce emotional interference. Practice rational decision-making by asking if a trade aligns with your strategy.Why It Persists: Human nature drives fear of loss or the thrill of gains, clouding judgment, especially in volatile markets.