#TradingMistakes101 TradingMistakes101 – Here's a breakdown of common trading mistakes that beginners (and even experienced traders) often make. Avoiding these can significantly improve your performance and mindset in the markets.

🔻 Top Trading Mistakes to Avoid

1. Lack of a Trading Plan

Mistake: Entering trades without clear rules or strategy.

Fix: Create and follow a written trading plan that defines entry/exit rules, risk tolerance, and asset focus.

2. Overleveraging

Mistake: Using too much borrowed money to trade, amplifying both gains and losses.

Fix: Use conservative leverage and understand margin requirements.

3. Revenge Trading

Mistake: Trying to win back losses by immediately placing emotional trades.

Fix: Step away after a loss, analyze what went wrong, and only return with a clear head.

4. Ignoring Risk Management

Mistake: Risking too much per trade or not using stop losses.

Fix: Risk only 1–2% of your account per trade and always use stop-loss and take-profit levels.

5. Lack of Discipline

Mistake: Deviating from your plan due to emotions or market noise.

Fix: Treat trading like a business—stay consistent, document trades, and review performance regularly.

6. Chasing the Market

Mistake: Entering trades out of FOMO (Fear of Missing Out).

Fix: Wait for setups that meet your strategy criteria—missed opportunities are better than bad entries.

7. Not Understanding the Asset

Mistake: Trading assets (stocks, forex, crypto, etc.) without knowing what moves them.

Fix: Do fundamental and technical research before trading any new instrument.

8. Overtrading

Mistake: Taking too many trades, leading to burnout or higher fees.

Fix: Focus on quality setups over