#TradingMistakes101 Trading Errors 101:

Not having a trading plan:

A trading plan should include entry and exit strategies, risk management, position sizing, and profit objectives.

Not managing risk:

Setting loss limits (stop-loss) and managing capital appropriately are essential to avoid significant losses.

Not doing research:

Before making any trade, it is important to research the asset, its history, and market trends.

Trading emotionally:

Impulsivity and emotions can lead to making wrong decisions.

Not having clear goals:

Defining profit and risk objectives is crucial to have a clear vision of what you are seeking in trading.

Over-diversification:

Not focusing on a specific market can hinder the development of experience and skill.

Averaging down on losing trades:

Adding more capital to a losing trade instead of closing the position and reducing losses is a common mistake.

Increased risk with success:

Increasing the stake after a successful trade without having a clear risk management strategy can lead to significant losses.

Overtrading:

Making too many trades without a defined strategy can dilute focus and increase risk.

Not taking profits:

Failing to take profits when targets are reached can lead to missing the opportunity to secure gains.

Changing the trading plan during the trade:

Not following the original trading plan can create confusion and impulsive decisions.

Not having patience:

Impatience can lead to hasty decisions and failing to wait for the right opportunities.

Not having discipline:

Lack of discipline can lead to breaking the rules of the trading plan and making wrong decisions.