#TradingMistakes101 Alright, let's dive into **Trading Mistakes 101**. This is crucial for anyone looking to navigate financial markets, whether it's stocks, crypto, forex, or commodities. Learning from common pitfalls can save you a lot of grief (and money!).
Here are some of the most frequent and costly trading mistakes, often made by beginners but sometimes even by seasoned traders who lose discipline:
### **The Big Ones: Psychology & Planning**
1. **Emotional Trading (Fear & Greed):** This is arguably the **#1 killer of trading accounts**.
* **Fear:** Leads to panic selling during temporary dips, missing out on rebounds, or being too afraid to enter good opportunities.
* **Greed:** Causes overtrading, taking excessively large positions, holding onto losing trades too long hoping they'll turn around, or refusing to take profits because you think it "can go higher."
* **Revenge Trading:** After a loss, trying to immediately jump back in and "get your money back," often leading to even bigger losses.
* **Overconfidence:** After a few winning trades, believing you can't lose and taking on undue risk.
2. **Trading Without a Plan:**
* **No Strategy:** Entering trades based on a whim, a "gut feeling," or a tip from social media, rather than a well-resealed and backtested strategy.
* **No Entry/Exit Points:** Not knowing when to get in or, more importantly, when to get out (both for profit and loss) before you even enter a trade.
* **No Risk Management:** The single most crucial missing piece. Not defining how much capital you're willing to risk per trade or per day/week.
3. **Failing to Cut Losses:**
* **Holding onto Losers:** The dangerous habit of letting a losing trade run in the hope that "it will come back." Small losses can quickly snowball into catastrophic ones.
* **Moving Stop-Loss Orders:** Setting a stop-loss (a predetermined point to exit a losing trade) but then cancelling or moving it further away when the price hits it, just to avoid taking the loss
### **Risk Management Missteps**$BTC
