TradingMistakes101 Making mistakes is part of the learning process, but some can be costly if not recognized in time.
Here is a list of common mistakes:
1. Not having a trading plan
Entering the market without a clear strategy for entry, exit, and risk management is one of the most dangerous mistakes.
2. Not using a stop loss
Trading without loss limits can lead to significant capital declines. A stop loss protects your account from emotions and impulsive decisions.
3. Over-leveraging
Using too much leverage can amplify gains, but also losses. Many traders blow accounts for this reason.
4. Entering based on emotions (fear or FOMO)
Trading out of fear or the desire not to miss an opportunity (FOMO) leads to poorly analyzed entries that are almost always negative.
5. Not accepting losses
Trying to "recover" a loss with more risk usually makes things worse. Accepting that you can lose on a trade is key.
6. Overtrading
Making too many trades without technical or emotional foundation can mentally exhaust you and drain your account.
7. Constantly changing strategies
Trying a new strategy every week prevents you from truly evaluating if a methodology works. Consistency is crucial.
8. Not keeping a trading journal
Recording your trades helps detect patterns of error or improvement. Many traders progress much faster by keeping a serious log.