#TradingMistakes101

🚫 Common Trading Mistakes and How to Avoid Them

Trading Without a Plan

Making random decisions without a clear strategy.

🔁 Solution: Create a clear plan that includes entry and exit points and risk management.

Overleveraging

Leverage can amplify profits but also magnify losses.

🔁 Solution: Use leverage cautiously and ensure you understand the margin requirements.

Revenge Trading

Trying to quickly recover losses often leads to even greater losses.

🔁 Solution: Take a break after losses and calmly review what happened.

Not Implementing Risk Management

Risking a large percentage of capital on a single trade.

🔁 Solution: Do not risk more than 1–2% of your capital on any trade.

Following the Herd

Mimicking others' trades without understanding the analysis or reasons.

🔁 Solution: Rely on your own analysis and strategy.

Lack of Learning and Knowledge

Entering the market based on rumors or fear of missing out (FOMO).

🔁 Solution: Keep learning and developing your skills in technical and fundamental analysis.

Overtrading

Opening too many trades excessively leads to exhaustion and losses.

🔁 Solution: Be selective and only trade when clear opportunity conditions are present.

Ignoring Market Conditions

Using the same strategy at all times (whether the market is trending or moving sideways).

🧠 Golden Advice:

Discipline is more important than strategy.