#TradingMistakes101

🚫 Top Trading Mistakes to Avoid

1. Lack of a Trading Plan

Mistake: Trading based on impulse or news without a clear strategy.

Fix: Create a plan with entry/exit rules, risk management, and position sizing.

2. Overleveraging

Mistake: Using too much borrowed capital, magnifying both gains and losses.

Fix: Use leverage conservatively; never risk more than you can afford to lose.

3. Revenge Trading

Mistake: Trying to win back losses immediately, leading to emotional decisions.

Fix: Take a break after a big loss; reassess your plan with a clear mind.

4. Poor Risk Management

Mistake: Risking too much on a single trade (e.g., 10–20% of account).

Fix: Use the 1–2% rule — risk only a small portion of your capital per trade.

5. Ignoring Stop Losses

Mistake: Not setting or moving stop losses emotionally.

Fix: Use hard stop-loss orders. Set them before entering a trade and respect them.

6. Overtrading

Mistake: Trading too frequently due to boredom, fear of missing out (FOMO), or greed.

Fix: Focus on quality over quantity. Wait for your setups.

7. Lack of Education

Mistake: Jumping in without understanding the market or technical/fundamental analysis.

Fix: Invest time in learning. Paper trade to practice without risk.

8. Chasing the Market

Mistake: Entering trades late after a move has already happened.

Fix: Be patient and wait for retracements or valid entry signals.

9. Emotional Trading

Mistake: Letting fear, greed, or hope dictate actions.

Fix: Follow your strategy. Use journaling to track emotions and learn from them.

10. Ignoring Market Conditions

Mistake: Trading the same way in trending vs. choppy markets.

Fix: Adapt your strategy.