#TradingMistakes101

Trading is full of risks, but avoiding common mistakes increases your chances of success. Here are the most important ones:

* Trading without a plan: Don’t enter trades randomly. Define entry and exit points, profit targets, and stop-loss orders before starting and stick to your plan.

* Chasing high prices (FOMO): Don’t rush to buy when prices rise out of fear of missing out. Your decisions should be based on analysis, not emotion.

* Not using a stop-loss: Don’t let losses accumulate. Always set a stop-loss order to determine the maximum loss you are willing to take on any trade.

* Emotional trading: Fear and greed destroy trades. Maintain your discipline and step away from the screens if you feel your emotions are controlling you.

* Overtrading: A lot of trades do not necessarily mean more profits. Focus on the quality of trades, not the quantity, to avoid eroding profits through fees.

* Ignoring risk management: Don’t risk a large percentage of your capital on a single trade. Determine the appropriate position size (e.g., 1-2% of your capital).

* Not learning from mistakes: Record your trades and review them regularly to learn from your successes and failures and avoid repeating the same mistakes.

Trading is a continuous journey of learning; avoid these mistakes to enhance your chances of achieving your financial goals.

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