#TradingMistakes101
🚫 1. No Trading Plan
• What happens: Jumping into trades without clear entry, exit, or risk rules.
• Fix: Define your strategy ahead of time (setup criteria, stop-loss, target, max loss per trade), and stick to it.
💸 2. Ignoring Risk Management
• What happens: Overexposing a single trade, leading to large losses.
• Fix: Never risk more than 1–2% of your capital per trade; always set stop-losses.
🤔 3. Letting Emotions Drive You
• What happens: Fear or greed leading to chasing trades or holding losers too long.
• Fix: Use pre-set rules, avoid impulsive decisions, and consider trading with a demo account.
🔁 4. Overtrading
• What happens: Trading too frequently to “make back losses” or because you’re bored.
• Fix: Only trade setups that meet your criteria—quality over quantity.
📉 5. No Record‑keeping
• What happens: You repeat mistakes because you don’t track performance.
• Fix: Maintain a trade journal (entry reason, outcome, lessons). Review it weekly to spot patterns.
🎓 6. Neglecting Education
• What happens: Relying on tips or social media hype without understanding.
• Fix: Learn chart patterns, indicators, macro impacts, order types. Practice before risking real money.
🏛️ 7. Failing to Adapt
• What happens: Persisting with a failing strategy in changing market conditions.
• Fix: Know if your strategy suits trending vs ranging markets. Be ready to switch approach.
✍️ 8. Ignoring Technicals & Fundamentals
• What happens: Entering trades without analyzing charts or underlying factors.
• Fix: Combine technical levels (support/resistance, trendlines) with news and macro context.
🔄 9. Lack of Patience
• What happens: Prematurely exiting good trades or jumping in too early.
• Fix: Wait for confirmation, stick to your candles/timeframes, and let winners run.
🛠️ Tools & Best Practices
• Always use stop-loss/take-profit tools.
• Backtest strategies before live trading.
• Use paper trading to build discipline.