#TradingMistakes101

🧠 1. Lack of a Trading Plan

Mistake: Jumping into trades without a clear plan.

Why It Hurts: Without defined goals, entry/exit strategies, and risk limits, you're gambling, not trading.

Fix: Create a written trading plan and stick to it.

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📊 2. Overleveraging

Mistake: Using too much borrowed capital.

Why It Hurts: Leverage amplifies both gains and losses. A small market move can wipe out your account.

Fix: Use leverage cautiously and only if you fully understand the risks.

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⏰ 3. Overtrading

Mistake: Making too many trades, often from boredom or fear of missing out (FOMO).

Why It Hurts: Increases transaction costs and emotional fatigue.

Fix: Be selective. Quality over quantity.

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❌ 4. Not Using Stop Losses

Mistake: Letting losing trades run with the hope they’ll reverse.

Why It Hurts: Losses can spiral out of control.

Fix: Always set a stop loss before entering a trade.

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📉 5. Chasing the Market

Mistake: Entering trades late, especially during high volatility.

Why It Hurts: Often results in buying tops or selling bottoms.

Fix: Be patient. Wait for pullbacks or confirmation.

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🧪 6. No Backtesting or Practice

Mistake: Trading live without testing your strategy.

Why It Hurts: Real money is at risk with unproven methods.

Fix: Use demo accounts or backtest your strategy on historical data.

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🧘 7. Letting Emotions Drive Decisions

Mistake: Fear, greed, or revenge trading after a loss.

Why It Hurts: Emotional trades are rarely good trades.

Fix: Stick to your strategy. Take breaks when you're emotionally charged.