Many new traders fall into common pitfalls that can lead to significant losses. One major mistake is letting emotions drive decisions—fear and greed often cloud judgment. Overtrading, or jumping into too many positions without a clear strategy, is another frequent error. Failing to use stop-loss orders leaves traders vulnerable to unexpected market swings. Ignoring risk management and betting too heavily on a single trade can quickly wipe out capital. Successful trading requires discipline, a well-defined plan, and continuous learning. Avoiding these basic errors is essential for long-term success in the markets.
