#TradingMistakes101 One of the most common and costly trading mistakes is emotional trading—making decisions based on fear, greed, or frustration instead of logic and strategy. Traders often panic during market dips or get overly confident during rallies, leading to impulsive decisions like buying high and selling low. Emotional trading usually stems from a lack of a solid trading plan, poor risk management, or overexposure in a single trade. This behavior clouds judgment and deviates from long-term goals. To avoid this, traders should establish clear entry and exit rules, set stop-loss orders, and stick to a disciplined approach. Keeping a trading journal and continuously analyzing trades also helps in building emotional control and improving decision-making.