#TradingMistakes101 Even experienced traders make mistakes, but recognizing them early can save you from costly losses. One of the biggest errors is overtrading—entering too many positions out of FOMO or impatience, which often leads to emotional decisions. Another critical mistake is ignoring risk management; always set stop-losses and never risk more than 1-2% of your capital per trade.
Many traders also chase pumps without proper research, only to buy at the top before a dump. Additionally, revenge trading after a loss often compounds losses instead of recovering them. Lastly, neglecting macro trends can leave traders blindsided by sudden market shifts.
The key to long-term success? Discipline, patience, and continuous learning. Analyze your losing trades—each one teaches a valuable lesson. Stick to your strategy, avoid emotional decisions, and always prioritize capital preservation over reckless bets.