#TradingMistakes101 Trading can be profitable, but it is fraught with mistakes that can cost even the most experienced dearly. Knowing the common mistakes is the first step to avoiding them and trading more intelligently.

One of the most frequent failures is the lack of a defined trading plan. Trading impulsively, without a clear strategy for entry, exit, and risk management, is a recipe for disaster. Poor risk management is another major problem; not setting loss limits (stop-loss) or investing more than one can afford to lose leads to ruin quickly. Additionally, excessive leverage amplifies both gains and losses, being a double-edged sword for novice traders.