#TradingMistakes101 **#TradingMistakes101: Common Pitfalls & How to Avoid Them**

Trading can be highly rewarding, but even experienced traders make mistakes. Here’s a breakdown of the most common trading errors and how to avoid them:

### **1. Lack of a Trading Plan**

❌ **Mistake:** Trading without a clear strategy, entry/exit rules, or risk management.

✅ **Fix:** Develop a written trading plan with defined rules for setups, position sizing, and risk-reward ratios.

### **2. Overleveraging**

❌ **Mistake:** Using excessive margin or position sizes, leading to blown accounts.

✅ **Fix:** Risk only 1-2% of your capital per trade and avoid overexposing your account.

### **3. Revenge Trading**

❌ **Mistake:** Trying to recover losses immediately by taking impulsive trades.

✅ **Fix:** Stick to your strategy—take a break after a losing streak to reset emotionally.

### **4. Ignoring Stop-Losses**

❌ **Mistake:** Moving or removing stop-losses, hoping the trade will turn around.

✅ **Fix:** Always use a stop-loss and respect it—no exceptions.

### **5. Chasing Trades (FOMO)**

❌ **Mistake:** Jumping into a trade too late because of fear of missing out (FOMO).

✅ **Fix:** Wait for pullbacks or confirmations—don’t chase extended moves.

### **6. Overtrading**

❌ **Mistake:** Taking too many trades, especially in low-probability setups.

✅ **Fix:** Quality over quantity—only trade your best setups.

### **7. Not Adapting to Market Conditions**

❌ **Mistake:** Using the same strategy in trending vs. ranging markets.

✅ **Fix:** Adjust your approach based on volatility and market structure.

### **8. Emotional Trading**

❌ **Mistake:** Letting fear or greed dictate decisions instead of logic.

✅ **Fix:** Follow your plan, stay disciplined, and avoid emotional triggers.

### **9. Ignoring Fundamentals (For Swing/Position Traders)**

❌ **Mistake:** Trading purely on technicals without considering news/events.

✅ **Fix:** Stay aware of economic calendars and major catalysts.