#TradingMistakes101
1 Mistake : Trading without a clear strategy or plan, relying on gut feelings or random decisions.
Solution :Develop a trading plan that includes entry/exit criteria, risk management rules, and goals. Stick to it consistently. Backtest your strategy to ensure it works across different market conditions.
2 Mistake : Risking too much capital on a single trade or not using stop-loss orders.
Solution : Never risk more than 1-2% of your account on a single trade. Use stop-loss orders to limit losses. Diversify positions to avoid overexposure to one asset.
3 Mistake : Buying after a big price run-up or selling during a panic, hoping to catch the trend.
Solution : Avoid chasing momentum. Use technical analysis (e.g., support/resistance levels) to find better entry points. Wait for pullbacks or confirmations.
4 Mistake : Taking too many trades, often driven by FOMO (fear of missing out) or chasing short-term gains.
Solution : Focus on quality over quantity. Wait for high-probability setups that align with your plan. Track your trades to identify overtrading patterns.