#TradingMistakes101 Top Trading Mistakes
Here's a quick rundown of common trading pitfalls:
Poor Planning
* No plan: Trading without a clear strategy for entry, exit, or risk.
* Poor research: Not understanding what you're trading or market conditions.
* Unrealistic goals: Expecting fast riches, leading to reckless decisions.
Emotional Traps
* Emotional trading: Letting fear (FOMO, holding losers) or greed (overleveraging, overstaying winners) rule your decisions.
* Revenge trading: Trying to win back losses immediately, often digging a deeper hole.
* Lack of discipline: Straying from your trading plan due to impulses.
Bad Risk Management
* No stop-loss: Leaving yourself open to unlimited losses.
* Wrong position sizing: Risking too much capital on one trade.
* Overleveraging: Using too much borrowed money, which magnifies losses.
Execution Issues
* Slippage: Orders filling at unexpected prices.
* Misreading signals: Incorrectly interpreting charts or indicators.
* Ignoring costs: Underestimating how fees impact your profits.
Neglecting Learning
* No trading journal: Not recording and learning from your trades.
* Skipping reviews: Failing to analyze past performance.
* Not adapting: Sticking to old strategies in changing markets.
Avoiding these common errors is crucial for better trading outcomes.