#TradingMistakes101 Let's break down common trading mistakes to help you avoid costly pitfalls:

General Trading Mistakes

- *Changing Strategies After Losses*: Stick to your approach, as every losing streak will end. Don't switch strategies after 5 losing trades in a row.

- *Not Expecting the Unexpected*: Prepare for sudden market collapses or news releases with a fixed stop loss.

- *Not Keeping Track of News*: Stay aware of news releases, even as a technical trader.

- *Lack of Preparation*: Have a detailed trading plan for the upcoming session.

- *Not Analyzing Trades*: Regularly review your trades to improve future performance.

Risk and Money Management

- *Risking Too Much*: Limit risk to 1% of your capital per trade.

- *Ignoring Correlations*: Be aware of correlations between instruments to avoid increased risk.

- *Underestimating Drawdowns*: Understand that even good strategies can have 5-10 losing trades in a row.

- *Adding to Losing Positions*: Avoid delaying loss realization, as it can devastate your trading account.

- *Not Understanding Stop Loss*: Set stop loss based on trade size and take profit distance, not just pip amounts.

Trade Management

- *Not Having a Trade Checklist*: Use a checklist to increase discipline and performance.

- *Widening Stop Loss*: Avoid widening stop loss when price moves against you.

- *Using Mental Stops*: Use actual stop loss orders instead of mental stops.

- *Moving Stops Too Close*: Give trades room to breathe and avoid premature exits.

Common Sense

- *Expecting Quick Riches*: Trading requires patience and discipline.

- *Not Treating Trading as a Business*: Continuously improve and analyze your performance.

- *Following Random Advice*: Make informed decisions based on your own analysis and strategy.

- *Overtrading*: Wait for setups and avoid forced trades.

- *Emotional Trading*: Stay objective and avoid impulsive decisions ¹ ².