#TradingMistakes101 **Trading Mistakes 101: Common Pitfalls Every Trader Should Avoid**

Trading can be highly rewarding, but many beginners (and even experienced traders) fall into common traps that lead to losses. Here are some critical mistakes to avoid:

1. **Lack of a Trading Plan** – Trading without a strategy is gambling. Define your entry, exit, and risk management rules before entering any trade.

2. **Overtrading** – Taking too many trades, especially out of boredom or revenge, increases risk and emotional stress.

3. **Ignoring Risk Management** – Never risk more than 1-2% of your capital per trade. Poor risk control can wipe out your account fast.

4. **Chasing Losses** – Trying to recover losses with impulsive trades often leads to bigger losses. Stick to your plan.

5. **Emotional Trading** – Fear and greed lead to bad decisions. Stay disciplined and avoid FOMO (Fear of Missing Out).

6. **Not Using Stop-Losses** – Letting losses run destroys accounts. Always use stop-loss orders to protect your capital.

7. **Following the Crowd** – Blindly copying trades or tips without analysis can be disastrous. Do your own research.

8. **Ignoring Market Conditions** – Strategies that work in trending markets may fail in choppy ones. Adapt to changing conditions.

9. **Overleveraging** – Excessive leverage amplifies gains but also losses. Use leverage cautiously.

10. **Lack of Patience** – Not every setup is worth taking. Wait for high-probability opportunities.

Avoiding these mistakes requires discipline, education, and experience. Successful trading isn’t about being right all the time—it’s about managing risk and sticking to a proven strategy. Always keep learning and refining your approach!