#TradingMistakes101

Trading can be tempting, especially with the widespread stories of quick profits. But the reality is quite different, as many new traders (and even professionals sometimes) fall into recurring mistakes that can cost them a lot. Here are some of the most notable mistakes:

1. Lack of a clear trading plan

Entering the market without a plan is like sailing without a compass. You should define your goals, entry and exit points, and risk management strategy before executing any trade.

2. Risking a large percentage of capital

Putting a large percentage of capital into a single trade can lead to significant losses: do not risk more than 1-2% of your capital on any trade.

3. Weak emotional control

Fear and greed are a trader's enemies. Making decisions driven by emotion often leads to wrong decisions such as premature selling or late buying.

4. Random or excessive trading

Frequent trading without a clear reason or strategy leads to draining the account due to fees and accumulated losses.

5. Ignoring risk management

Using stop-loss and managing position size are essential to protect capital. Ignoring them exposes you to the risk of total loss.

6. Seeking to quickly compensate for losses

The desire to quickly recover losses often drives traders to make more mistakes. Learning from mistakes is better than chasing them.