#TradingMistakes101
Trading Error No. 1: The Price of Making Emotional Choices Making decisions based solely on feelings is one of the most frequent trading errors. Panic selling during dips causes preventable losses, while fear of missing out (FOMO) frequently causes traders to enter at the top. Overleveraging, or using borrowed money to pursue rapid gains without risk management, is another significant mistake. Additionally, a lot of people neglect to place stop-loss orders, leaving them vulnerable to significant declines.
Confusion and inconsistency result from switching between strategies without conducting adequate testing. Discipline, patience, and a well-thought-out plan are more important in trading than gut feelings or hype. The first step to improving your trading skills and resilience in erratic markets is to steer clear of these common blunders.
