🚫 Top Trading Mistakes to Avoid
1. Trading Without a Plan
Mistake: Jumping into trades without a clear strategy.
Why it’s bad: Emotional decisions often lead to losses.
Fix it: Always define:
Entry & exit points
Risk-reward ratio
Stop-loss and take-profit levels
2. Overtrading
Mistake: Trading too frequently or with too much size.
Why it’s bad: Leads to burnout, fees, and emotional exhaustion.
Fix it: Focus on quality setups, not quantity. Stick to a set number of trades per day/week.
3. Not Using Stop-Losses
Mistake: Holding onto losing trades "hoping" they’ll recover.
Why it’s bad: Can wipe out your capital on a single bad trade.
Fix it: Always use stop-losses to define maximum acceptable loss.
4. Chasing the Market / FOMO
Mistake: Buying because everyone else is — often at the peak.
Why it’s bad: Markets are often volatile after big moves.
Fix it: Stick to your plan. Don’t trade based on hype, especially from social media.
5. Ignoring Risk Management
Mistake: Going "all in" or risking too much per trade.
Why it’s bad: A few bad trades can wipe out your account.
Fix it: Use the 1-2% rule: never risk more than 1–2% of your capital on a single trade.