#TradingMistakes101 Learning to trade is as much about discipline and psychology as it is about charts and strategies. Here’s a roundup of the top mistakes new (and even experienced) traders make — and how to avoid them.
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🚨 1. FOMO (Fear of Missing Out)
Jumping into a trade just because everyone else is talking about it.
• 🔴 Mistake: Buying the top of a hype wave.
• ✅ Fix: Stick to a plan. If it’s pumping, you’re probably late.
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😨 2. Panic Selling
Selling during a dip because of fear, even if the fundamentals haven’t changed.
• 🔴 Mistake: Emotional exits during temporary corrections.
• ✅ Fix: Set stop-losses ahead of time and stick to your plan.
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💵 3. Overleveraging
Using borrowed funds (leverage) to try to increase gains — and getting liquidated.
• 🔴 Mistake: 10x, 20x, even 100x leverage is dangerous for beginners.
• ✅ Fix: Avoid leverage unless you fully understand risk management.
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🧮 4. No Risk Management
Trading without setting stop-losses, take-profits, or position size limits.
• 🔴 Mistake: Betting big on every trade = fast losses.
• ✅ Fix: Use the 1–2% rule — risk no more than 1–2% of your capital on a single trade.
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📉 5. Chasing Losses (Revenge Trading)
Trying to “win back” money by making impulsive trades after a loss.
• 🔴 Mistake: Letting emotions drive your next move.
• ✅ Fix: Take a break after a loss. Reassess calmly.
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📈 6. No Trading Plan
Trading randomly or based on Twitter posts, TikToks, or “gut feelings.”
• 🔴 Mistake: No entry/exit rules = chaos.
• ✅ Fix: Create a simple plan:
• When to enter
• When to exit
• How much to risk
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🧪 7. Not Practicing First
Trading live with real money before testing strategies.
• 🔴 Mistake: Learning with your wallet.
• ✅ Fix: Use demo accounts or paper trading to practice.
