Lack of a Trading Plan:
Trading without a clear plan is like sailing without a map. Define your goals, risk tolerance, entry and exit points before placing trades.
Lack of a Trading Plan:
Many traders risk too much on a single trade. Always use stop-loss orders and never risk more than a small percentage of your capital on any trade.
Letting Emotions Drive Decisions
Fear and greed can lead to impulsive trades. Stick to your strategy and avoid chasing losses or overtrading during winning streaks.
Neglecting Market Research and Analysis
Trading blindly without analyzing market conditions and trends often leads to losses. Use technical and fundamental analysis to make informed decisions.
Overtrading and Lack of Patience
Trying to trade too frequently or forcing trades when opportunities are limited can drain your capital. Patience is key to waiting for the right setups.