#TradingMistakes101

Trading can be highly profitable, but even experienced traders make mistakes. Here are some of the most common trading mistakes and how to fix them:

### **1. Lack of a Trading Plan**

❌ **Mistake:** Rushing into trades without a clear strategy.

✅ **Solution:** Define your entry and exit rules, risk tolerance, and goals before trading.

### **2. Over-leveraging**

❌ **Mistake:** Using too much margin, leading to account losses.

✅ **Solution:** Risk only 1-2% of your capital on each trade.

### **3. Revenge Trading**

❌ **Mistake:** Trying to recover losses immediately by entering hasty trades.

✅ **Solution:** Step back after a loss, reassess the situation, and stick to your plan.

### **4. Ignoring Risk Management**

❌ **Mistake:** Not using stop-loss orders and letting losses accumulate.

✅ **Solution:** Always use stop-loss orders and accurately calculate position sizes.

### **5. Chasing Trades (FOMO)**

❌ **Mistake:** Entering late out of fear of missing out.

✅ **Solution:** Wait for the right setups; the markets always provide opportunities.

### **6. Overtrading**

❌ **Mistake:** Making too many trades to "force" profits.

✅ **Solution:** Quality over quantity - only trade in high-probability setups.