#TradingMistakes101 Making mistakes is part of the learning process, but some can be costly if not recognized in time.
Here is a list of common mistakes:
1. Not having a trading plan
Entering the market without a clear strategy for entry, exit, and risk management is one of the most dangerous mistakes.
2. Not using a stop loss
Trading without loss limits can lead to significant capital declines. A stop loss protects your account from emotions and impulsive decisions.
3. Over-leveraging
Using too much leverage can amplify gains, but also losses. Many traders burn accounts for this reason.
4. Entering based on emotions (fear or FOMO)
Trading out of fear or not wanting to miss an opportunity (FOMO) leads to poorly analyzed entries and almost always negative outcomes.
5. Not accepting losses
Attempting to "recover" a loss with more risk often worsens the situation. Accepting that you can lose in a trade is key.
6. Overtrading
Making too many trades without technical or emotional grounding can mentally exhaust you and drain your account.
7. Constantly changing strategies
Trying a new strategy every week prevents you from really assessing whether a methodology works. Consistency is crucial.
8. Not keeping a trading journal
Recording your trades helps detect patterns of error or improvement. Many traders progress much faster by keeping a serious record.
9. Ignoring fundamental or technical analysis
Some traders focus only on one type of analysis, when often the combination of both yields better results.
10. Lack of continuous training
The market changes, and so should your knowledge and skills. Not studying or practicing can leave you behind.
I hope this helps you avoid making these mistakes.
