#TradingMistakes101 Here is a list of common mistakes made by traders, marked as
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🚫 1. Lack of a trading plan
Trading without a clearly defined strategy is like sailing without a map. Always have a plan that includes:
• entry and exit points
• stop loss level
• expected profit
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🧠 2. Emotional decisions
Fear and greed are the enemies of profit. Stick to your strategy instead of making impulsive decisions.
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📈 3. Overtrading
Trading too frequently increases risk and commissions. Trade only when you have an edge.
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💰 4. Poor capital management
Risking too large a portion of capital on a single trade is a quick path to liquidation. Rule: do not risk more than 1-2% of capital on a single position.
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👎 5. Lack of learning from mistakes
Not analyzing losing trades hinders growth. Keep a trading journal.
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📉 6. Chasing losses (revenge trading)
After a series of losses, it’s better to take a break than to try to “get back” at the market.
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📵 7. Ignoring fundamental/technical analysis
Relying solely on “gut feeling” rarely works. Combine technical analysis with fundamental analysis for better decisions.
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📊 8. Too many indicators
Overloading a chart can lead to confusion. Sometimes less is more.
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🔄 9. Changing strategy after one failure
A good strategy can sometimes lead to a loss. Do not abandon it after one bad result.
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⏰ 10. Poor timing
Entering too early or too late can ruin a position. Patience and precision are key.