#TradingMistakes101 Overtrading

Mistake: Jumping into too many trades, too often — driven by boredom, FOMO, or revenge.

Why it hurts: High fees, burnout, and impulsive decisions erode both capital and confidence.

Fix:

✅ Set a daily/weekly limit on trades

✅ Journal every trade — if you can't explain it, don’t place it

✅ Wait for clear setups (not just “it feels right”)

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2️⃣ Lack of Risk Management

Mistake: Going all-in or risking too much on one position.

Why it hurts: One bad trade = total wipeout.

Fix:

✅ Use the 1-2% rule (risk max 1-2% of total capital per trade)

✅ Always set a stop-loss

✅ Diversify — don’t bet your portfolio on a single asset or outcome