#TradingMistakes101
Common Trading Mistakes Every Trader Should Avoid**
1. **Lack of a Trading Plan**
- Trading without a clear strategy is like driving blindfolded.
- A plan should include entry/exit rules, risk management, and goals.
2. **Ignoring Risk Management**
- Risking too much per trade (e.g., more than 1-2% of capital).
- No stop-loss orders → small losses turn into big ones.
3. **Overtrading**
- Taking too many trades out of FOMO or boredom.
- Chasing losses leads to emotional decisions.
4. **Letting Emotions Rule**
- Fear (exiting too early) and greed (holding too long) destroy profits.
- Stick to the plan, not impulses.
5. **Not Keeping a Trading Journal**
- Without tracking trades, you can’t learn from mistakes.
- Reviewing past trades helps refine strategy.