5 Common Mistakes New Traders Make (and How to Avoid Them)

Whether you're just starting out or looking to sharpen your trading game, avoiding these common mistakes can save your capital and grow your confidence:

Overtrading

Trading too frequently or without a clear plan leads to burnout and losses. Tip: Only trade when there's a high-probability setup based on your strategy.

Ignoring Risk Management

Never risk more than 1-2% of your capital on a single trade. Use stop-losses to protect your downside—capital preservation is key.

Chasing the Market

Buying after a massive pump or selling after a dump is driven by emotion, not strategy. Tip: Let the market come to you—plan your entries and exits.

Lack of Journaling

Without a trading journal, you're missing out on growth. Log every trade: entry, exit, reason, and outcome. Review regularly to identify patterns and mistakes.

Not Adapting to Market Conditions

A strategy that works in a bull market might fail in a range-bound or bearish market. Learn to adapt and stay flexible.

Remember: Trading is a marathon, not a sprint. Stay patient, stay disciplined, and keep learning.