#TradingMistakes101

1. Lack of a Strategy

Many people start trading without a well-defined plan. This often leads to impulsive and inconsistent decisions.

Solution: Define your goals, entry/exit levels, risk management, and analysis strategy (technical, fundamental, or both) in advance.

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2. FOMO (Fear Of Missing Out)

Entering the market just because an asset is rising rapidly often leads to buying at the top.

Solution: Follow your strategy, not your emotions. If you miss an opportunity, there will be others.

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3. Poor Risk Management

Many traders don’t use stop-losses, invest too much in a single position, or use excessive leverage.

Solution: Risk only a small percentage of your capital per trade (e.g., 1–2%) and always set a stop-loss.

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4. Over-Reliance on Signals or Influencers

Blindly following signals on Telegram, YouTube, or X (formerly Twitter) without understanding the reasoning can lead to losses.

Solution: Use signals only as inspiration and always verify them with your own analysis.

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5. Overtrading

Making too many trades in a short period, often without a solid reason, leads to high fees and rushed decisions.

Solution: Be patient. Only take trades with a strong risk/reward ratio.