#TradingMistakes101 Common trading mistakes, also known as "trading mistakes 101", can be avoided with proper planning and risk management. A trading plan, emotional management, the use of stop-loss orders, and exposure control are fundamental to success in trading.

Common trading mistakes:

Not having a trading plan:

Trading without a plan leads to impulsive decisions and lack of discipline.

A plan should include strategies, risk limits, and the amount of capital that is risked on each trade.

Emotional trading:

Emotions can cloud decision-making and lead to impulsive trades or loss avoidance.

Emotional control is crucial to maintaining discipline and consistency with the trading plan.

Not using stop-loss orders:

Stop-loss orders limit potential losses and protect capital in case a trade does not go as expected.

They are an essential tool for risk management.

Excessive leverage:

Leverage amplifies gains and losses, which can lead to significant losses if not managed properly.

It is important to understand the risks of leverage and use it wisely.

Revenge trading:

Trying to quickly recover losses after a losing trade can lead to impulsive decisions and higher risk.

It is important to stay calm and follow the trading plan, even after a losing trade.