#TradingMistakes101 The 5 most common mistakes in trading: 👾

• Lack of a trading plan: Many traders operate without a defined strategy, leading to impulsive decisions and losses due to unclear objectives or risk management rules.

• Inadequate risk management: Not using stop-loss, risking too much capital per trade (more than 1-2% of the total) or ignoring the risk-reward ratio results in significant losses.

• Uncontrolled emotions: Fear and greed can lead to selling in panic during downturns or holding losing positions for too long, affecting discipline.

• Overtrading: Making too many trades per day or ignoring analysis can increase transaction costs and reduce profitability.

• Lack of education or analysis: Trading without understanding the markets, technical or fundamental indicators, or without following the news, leads to decisions based on assumptions rather than data.