#TradingMistakes101 Trading mistakes are common pitfalls that can derail even the most promising trading strategies. One prevalent error is emotional trading, where decisions are driven by fear or greed rather than sound analysis, leading to impulsive entries and exits. Another significant mistake is the lack of a well-defined trading plan or, worse, failing to stick to an existing one.
Over-leveraging, or taking on excessive risk relative to one's capital, can amplify losses during unfavorable market movements. Furthermore, inadequate risk management, such as neglecting stop-loss orders, can turn minor setbacks into catastrophic losses.
Finally, chasing hot tips without conducting independent research and the inability to learn from past errors often lead to a cycle of repeated mistakes.
