#TradingMistakes101
Here are some common trading mistakes:
* Lack of a Trading Plan: Entering trades without defined entry, exit, and risk management rules.
* Emotional Trading: Letting fear (panic selling) or greed (holding onto losers too long) dictate decisions.
* Overleveraging: Using too much borrowed capital, amplifying losses significantly.
* Ignoring Risk Management: Not setting stop-losses or position sizing appropriately for your capital.
* Chasing Markets: Jumping into trends late after significant moves have already occurred.
* Lack of Research: Not understanding the underlying asset, market conditions, or news impact.
* Overtrading: Taking too many trades, often leading to increased commissions and poor decision-making.
* Averaging Down on Losers: Adding to a losing position in the hope of a rebound, often increasing the overall loss.
* Not Learning from Mistakes: Repeating the same errors without analyzing what went wrong.
* Unrealistic Expectations: Believing in quick riches, leading to impulsive and high-risk behavior.