#TradingMistakes101

New traders often jump in excited—but without a strategy, that enthusiasm can turn costly. Here are key mistakes to avoid:

1. Lack of a Trading Plan: Entering trades without a clear entry, exit, and risk strategy is gambling, not trading.

2. Overtrading: Taking too many trades, especially after losses, leads to emotional decisions and bigger drawdowns.

3. Ignoring Risk Management: Never risk more than 1–2% of your capital on a single trade. Use stop-loss orders to limit downside.

4. Chasing FOMO (Fear of Missing Out): Buying when prices are pumping without research often results in buying tops and selling bottoms.

5. Not Keeping Records: Without tracking your trades, you won’t know what’s working and what’s not.

6. Using Too Much Leverage: Leverage amplifies both gains and losses. Use it cautiously and only when experienced.

Smart trading is about discipline, not luck. Learn from mistakes yours and others.