Many common trading errors stem from a lack of discipline and emotional control. Trading without a clear plan, which includes entry and exit points and risk management, often leads to reckless decisions. Overleveraging and risking a large amount of capital on a single trade can quickly destroy an account.

Emotional trading, driven by fear (FOMO) or greed, pushes traders to chase winning trades, cut winning trades short, or hold losing trades for too long. Neglecting thorough research, ignoring market conditions, and failing to use stop-loss orders are also common mistakes. To achieve success, traders must exhibit patience, adhere to a defined strategy, and continuously review their performance through a trading log.