#TradingMistakes101 *Common Trading Mistakes*

- *Impulsive Decision Making*: Trading without a comprehensive plan can lead to significant losses. Successful trading requires a well-thought-out strategy, risk management rules, and appropriate position sizing.

- *Overtrading*: Excessive buying and selling can increase transaction costs, stress levels, and emotional fatigue. Focus on quality trades rather than quantity.

- *Failure to Use Stop-Loss*: Ignoring stop-loss settings or setting them too wide can expose you to unnecessary risk. Determine your risk tolerance and set appropriate stop-loss levels.

- *Emotional Trading*: Allowing emotions such as fear, greed, or impatience to influence trading decisions can lead to poor outcomes. Develop a trading plan and stick to it.

- *Overleveraging*: Using excessive leverage can amplify both losses and gains. Be cautious when using margin and measure your exposure.

*Psychological Factors in Trading*

- *Fear and Greed*: Fear can lead to premature position exits, while greed can result in overtrading. Recognize these emotions and develop strategies to manage them.

- *Confirmation Bias*: Prioritizing information that confirms existing beliefs can lead to poor decision-making. Seek diverse sources of information and remain open to adjusting your strategy.

- *Irregular Trade Management*: Emotional trading can cause deviations from a predetermined plan. Set clear entry and exit points, and adhere to them.