#TradingMistakes101 🚫 Top Trading Mistakes to Avoid

1. Lack of a Plan

Trading without a clear strategy or risk management plan often leads to impulsive decisions.

✔️ Fix: Define entry, exit, and stop-loss levels before placing a trade.

2. Overtrading

Too many trades = higher risk, more fees, and emotional exhaustion.

✔️ Fix: Quality > quantity. Be selective.

3. Letting Losses Run

Hoping a losing trade will “turn around” often leads to larger losses.

✔️ Fix: Always use a stop-loss. Respect it.

4. FOMO (Fear of Missing Out)

Jumping into trades because “everyone else is doing it” usually ends badly.

✔️ Fix: Stick to your plan. Avoid chasing hype.

5. Ignoring Risk Management

Risking too much on a single trade can wipe out your account.

✔️ Fix: Risk no more than 1–2% of your capital per trade.

6. Revenge Trading

Trying to win back money after a loss with aggressive trades often leads to bigger losses.

✔️ Fix: Walk away. Trade with a clear mind.

7. Not Keeping a Trading Journal

Without tracking your trades, it’s hard to learn from mistakes.

✔️ Fix: Log each trade’s setup, result, and emotions involved.

8. Neglecting Fundamentals or News

Trading blind to market-moving news or events (like rate hikes or regulations) increases risk.

✔️ Fix: Stay informed—especially in crypto, forex, and stocks.

9. Overleveraging

Using too much margin can magnify losses quickly.

✔️ Fix: Leverage is a tool—not a shortcut. Use it wisely.

10. Impatience

Wanting fast profits often leads to risky decisions.

✔️ Fix: Focus on consistency, not instant success.