#TradingMistakes101 1. ❌ No trading plan

• Signs: Entering trades on a whim, because “people say so”, or FOMO.

• Consequences: Not knowing when to cut losses, when to take profits, prone to losses.

• ✅ Solution: Always set Entry, Stop-Loss, Take-Profit points in advance. Keep a trading journal.

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2. ❌ Not setting stop-loss

• Signs: Hoping the price will reverse, holding onto losses “until it recovers”.

• Consequences: Heavy losses, account wipeout.

• ✅ Solution: Always set a stop-loss immediately when entering a trade. The market doesn’t care about your emotions.

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3. ❌ Overtrade / Trading too much

• Signs: Constantly entering trades, addicted to trading, no breaks.

• Consequences: Losing emotional control, high transaction costs, prone to mistakes.

• ✅ Solution: Only trade when there is a clear setup. Focus on quality over quantity.

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4. ❌ Not managing capital (Risk Management)

• Signs: Using more than 20%–50% of account for each trade.

• Consequences: Losing a few trades leads to account wipeout.

• ✅ Solution: Risk on each trade should be under 1–3% of total account. Use appropriate position sizing.

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5. ❌ Trying to catch tops and bottoms

• Signs: Entering trades thinking “it can't go down any further”.

• Consequences: Buying high, selling low – double loss.

• ✅ Solution: Trade with the trend (trend is your friend), wait for confirmation signals before entering trades.

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6. ❌ Not controlling psychology (FOMO, FUD)

• Signs: Buying because “afraid of missing out”, selling because “afraid of losing everything”.

• Consequences: Impulsive decisions, unnecessary losses.

• ✅ Solution: Train psychology through backtesting, simulations, use demo accounts. Consider keeping an emotional journal for each trading session.

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