#TradingMistakes101
Here are some common #TradingMistakes101 every beginner (and even experienced trader) should watch out for:
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š« 1. No Trading Plan
Jumping into trades without a strategy is like gambling. Always define:
Entry/exit points
Risk/reward ratio
Stop-loss levels
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š 2. Letting Losses Run
Holding on to losing trades hoping theyāll ābounce backā often leads to bigger losses.
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šø 3. Overtrading
Trading too often or with too much volume can drain your capital and increase risk exposure.
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š° 4. Emotional Trading
Fear, greed, and FOMO (fear of missing out) often lead to poor decisions. Stay disciplined and stick to your plan.
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š 5. Ignoring Risk Management
Never risk more than 1ā2% of your capital on a single trade. Use stop-losses and position sizing wisely.
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š§» 6. Chasing the News
Jumping in after a major news event without proper analysis can be costly. Wait for confirmation.
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š§ 7. No Continuous Learning
Markets evolve. Always keep learning about technicals, fundamentals, and trading psychology.
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