#TradingMistakes101 Trading Mistakes 101: Common Pitfalls and How to Avoid Them

Trading can be an exciting and potentially profitable endeavor, but it also comes with many dangers for the unprepared. Many novice traders fall victim to common mistakes that can quickly wipe out their capital and dampen their enthusiasm. Understanding these pitfalls is the first step to avoiding them and building a more resilient trading strategy.

Here are some of the most common trading mistakes and practical tips on how to avoid them:

1. Trading without a plan (or failing to follow one):

* Mistake: Spontaneously entering trades based on emotions or "hot tips," without a defined strategy for entry, exit, risk management, or position size. Even having a plan but deviating from it due to fear or greed.