#TradingMistakes101 1. Lack of a Trading Plan

Mistake: Trading based on emotion or gut feeling.

Fix: Create a clear plan with entry/exit rules, risk limits, and a strategy.

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๐Ÿ’ฐ 2. Risking Too Much Per Trade

Mistake: Going all-in or risking large chunks of your capital.

Fix: Use position sizing and risk 1โ€“2% per trade max.

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๐Ÿ“‰ 3. Not Using Stop Losses

Mistake: Holding losing trades too long hoping they'll rebound.

Fix: Always set a stop loss. Discipline beats hope.

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๐Ÿง  4. Overtrading

Mistake: Taking too many trades due to boredom, excitement, or revenge trading.

Fix: Be selective. Trade quality over quantity.

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๐Ÿฆ 5. Ignoring Risk-Reward Ratios

Mistake: Taking trades with more downside than upside.

Fix: Aim for a minimum of 2:1 reward-to-risk ratio.

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๐Ÿ“ฐ 6. Trading on News Alone

Mistake: Jumping into volatile markets based only on headlines.

Fix: Combine fundamental news with technical analysis and proper timing.

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๐Ÿ“š 7. Not Reviewing Trades

Mistake: Repeating errors without learning from them.

Fix: Keep a trading journal and analyze both wins and losses.

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๐Ÿ›‘ 8. FOMO (Fear of Missing Out)

Mistake: Entering trades too late or without a setup.

Fix: Trust your plan. Thereโ€™s always another opportunity.

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๐ŸŽข 9. Letting Emotions Drive Decisions

Mistake: Panic selling or greed-based buying.

Fix: Stay calm and stick to your strategy.

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๐Ÿงช 10. No Backtesting or Demo Trading

Mistake: Using real money on unproven strategies.

Fix: Test your strategy in demo accounts before going live.