#TradingMistakes101 Trading can be an exciting and potentially profitable endeavor, but it's also fraught with pitfalls that can lead to significant losses. Understanding and actively avoiding common mistakes is crucial for any trader, from novice to experienced. Here are some of the most prevalent trading mistakes and how to steer clear of them:

1. Trading Without a Plan (or Not Sticking to It):

* Mistake: Jumping into trades impulsively, without defining entry and exit points, risk tolerance, or profit targets. Even if a plan exists, many traders deviate from it due to emotions or "gut feelings."

* Why it's a mistake: Without a plan, trading becomes gambling. Emotions take over, leading to irrational decisions. Not sticking to a plan negates its purpose.