#TradingMistakes101
In the world of trading, success is not measured by the number of trades you open, but by your ability to stay in the market and manage risks wisely. Here are three common misconceptions among beginner traders, and why they lead to inevitable losses:
1. The illusion of "recovering capital"
- Misconception: "I'll just wait a little, and prices will return to where they were."
- Reality: Markets do not adhere to your expectations, and the opposite trend may continue for months. Holding onto a losing trade without a clear exit plan often leads to account zeroing.
- Solution: Using a stop loss is a necessary defensive tool, not a sign of weakness. Accepting a small loss is better than waiting for the unknown.
2. Overconfidence in instant predictions
- Misconception: "This trade is guaranteed!"
- Reality: There is no guaranteed trade in the market. Even the strongest analyses remain probabilities. Making decisions based on emotion or haste can wipe out capital within minutes.
- Solution: Create a trading plan before entering the market, defining your entry point, profit target, and stop loss. Be prepared for the possibility of a failed trade.
3. Emotional drift in repeated buying