#TradingMistakes101 Every beginner trader makes mistakes, but understanding them early can help avoid costly losses. One of the most common mistakes is the lack of a plan of action. Many beginners invest emotionally, without a strategy for entering and exiting positions. Another mistake is the excessive use of leverage, which can lead to rapid capital loss, especially in volatile markets like cryptocurrencies.

Impatience is also a frequent problem – novices often want quick profits and ignore basic technical analysis. Ignoring risk management (e.g., lack of stop-losses) is another key mistake. Traders should also avoid overtrading.

To increase their chances of success, it's worth keeping a trading journal, analyzing their decisions, and continuously learning. Learning from mistakes – preferably others' – is the foundation of effective trading.