#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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๐ฐ 2. Risking Too Much Per Trade
Mistake: Going all-in or risking large chunks of your capital.
Fix: Use position sizing and risk 1โ2% per trade max.
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๐ 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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๐ง 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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๐ฆ 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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๐ฐ 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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๐ 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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๐ 8. FOMO (Fear of Missing Out)
Mistake: Entering trades too late or without a setup.
Fix: Trust your plan. Thereโs always another opportunity.
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๐ข 9. Letting Emotions Drive Decisions
Mistake: Panic selling or greed-based buying.
Fix: Stay calm and stick to your strategy.
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๐งช 10. No Backtesting or Demo Trading
Mistake: Using real money on unproven strategies.
Fix: Test your strategy in demo accounts before going live.