#TradingMistakes101 Here are the top trading mistakes to watch out for:

*Common Trading Mistakes*

- *Not Researching Properly*: Don't open or close a position based on gut feelings or tips without backing them up with evidence and market research. Understand the market you're entering, including its volatility and whether it's an over-the-counter or on-exchange market.

- *Trading Without a Plan*: A trading plan acts as a blueprint for your trades, outlining your strategy, time commitments, and investment capital. Sticking to your plan helps prevent impulsive decisions.

- *Over-Reliance on Software*: While trading software can be beneficial, understand its pros and cons. Algorithmic trading systems lack human judgment and can be reactive only to their programming.

- *Failing to Cut Losses*: Set stops to close positions at predetermined levels, minimizing risk. Consider guaranteed stops to combat slippage.

- *Overexposing a Position*: Be cautious of committing too much capital to a single market. Diversify your portfolio, but avoid overdiversifying too quickly.

- *Not Understanding Leverage*: Leverage can amplify gains and losses. Ensure you understand its implications before opening a position.

- *Letting Emotions Impair Decision-Making*: Emotional trading can lead to impulsive decisions. Base your trades on fundamental and technical analysis rather than emotions.

*Additional Mistakes to Avoid*