#TradingMistakes101 Here are common trading mistakes to avoid:
- *Lack of Diversification*: Putting all your money into a single asset or highly correlated assets, risking significant losses if it underperforms. Diversify across different asset classes to minimize risk.
- *Overexposure*: Trading with more than you can afford to lose, impacting your personal budget.
- *Revenge Trading*: Making impulsive trades to recoup losses, often resulting in further losses.
- *Overleveraging*: Using excessive leverage, amplifying potential losses.
- *Emotional Trading*: Letting emotions guide trading decisions, rather than a solid plan.
- *Overtrading*: Trading excessively, increasing costs and potential losses.
- *Poor Risk Management*: Failing to manage risk effectively, leading to significant losses.
- *Trading Without a Plan*: Entering trades without a clear strategy.
- *Ignoring Stop Losses*: Failing to set stop-loss orders, exposing yourself to excessive losses.
- *Not Learning from Mistakes*: Repeating errors instead of learning from them.¹ ² ³