#TradingMistakes101
🔻 1. Lack of a Trading Plan
Mistake: Entering trades based on gut feeling or tips.
Fix: Develop a clear trading plan that outlines entry/exit rules, risk management, and your strategy.
🎢 2. Overtrading
Mistake: Taking too many trades or increasing position sizes impulsively.
Fix: Stick to your plan and only take setups that meet your criteria. Quality > quantity.
💰 3. Risking Too Much
Mistake: Going all-in or risking more than 1–2% of your capital per trade.
Fix: Always use stop-loss orders and define your risk per trade to avoid large drawdowns.
🧠 4. Letting Emotions Take Over
Mistake: Fear and greed leading to panic selling or FOMO buying.
Fix: Keep a trading journal and practice emotional discipline. Trading is psychological warfare.
⏳ 5. Not Letting Profits Run
Mistake: Closing winning trades too early out of fear they’ll reverse.
Fix: Use trailing stops or partial profit-taking to let winners grow.
🔍 6. Ignoring Market Conditions
Mistake: Trading the same strategy in all market environments.
Fix: Adapt your strategies to the current market—trending, ranging, or volatile.
📚 7. Lack of Continuous Learning
Mistake: Thinking you know it all after a few wins.
Fix: Markets evolve. So should you. Read, backtest, and study consistently.
🕳️ 8. Revenge Trading
Mistake: Jumping back into the market after a loss to "win it back."
Fix: Take a break after losses. Revenge trading usually compounds mistakes.
🧾 9. Neglecting Record Keeping
Mistake: Not tracking trades or performance.
Fix: Maintain a trade journal with entry/exit reasons, outcomes, and emotions.
💡 10. Chasing Hype
Mistake: Buying into social media pump-and-dumps or news without research.
Fix: Do your own due diligence. If it’s already trending, it might be too late.