#TradingMistakes101

# Trading Mistakes 101: Common Errors to Avoid

## Emotional Trading Mistakes

- **FOMO Trading**: Jumping into positions because you fear missing out on moves

- **Revenge Trading**: Trying to immediately recover losses with impulsive trades

- **Overconfidence**: After a few wins, increasing position sizes recklessly

- **Holding Losers Too Long**: Hoping losing positions will turn around instead of cutting losses

## Technical Mistakes

- **Ignoring Stop Losses**: Not having an exit plan for when trades go wrong

- **Overleveraging**: Using too much margin and getting wiped out by small moves

- **Chasing Prices**: Entering trades too late after big moves have already happened

- **Overtrading**: Taking low-probability setups just to be in the market

## Strategic Mistakes

- **Lack of Trading Plan**: Trading without clear entry/exit rules

- **Not Adapting to Market Conditions**: Using the same strategy in trending and ranging markets

- **Ignoring Risk-Reward Ratios**: Taking trades where potential loss > potential gain

- **Position Sizing Errors**: Risking too much capital on single trades

## Psychological Mistakes

- **Confirmation Bias**: Only seeing information that supports your trade idea

- **Anchoring**: Fixating on entry price rather than current market reality

- **Herd Mentality**: Following crowds without independent analysis

## How to Avoid These Mistakes

1. Develop and stick to a written trading plan

2. Use proper risk management (1-2% of capital per trade)

3. Keep a trading journal to identify recurring mistakes

4. Take breaks after losses to avoid emotional decisions

5. Continuously educate yourself about market dynamics

Remember that even professional traders make mistakes - the key is learning from them rather than repeating them.