Mistake #1: Trading Without a Plan

Trading without a well-defined plan is like sailing without a map. Your trading plan should include your entry and exit criteria, position size, and a risk management strategy.

Mistake #2: Ignoring Risk Management

• A rule of thumb is to never risk more than 1-2% of your trading capital on any single trade. This protects you from major losses and keeps you in the market longer.

Mistake #3: Overtrading and Emotional Trading

• Many beginners tend to overtrade due to fear of missing out (FOMO) or revenge trading after losses. It's crucial to stick to your strategy and avoid letting emotions drive your trading decisions.

Mistake #4: Not Staying Informed

• The stock market is dynamic, and being uninformed about company earnings, economic reports, or market trends can lead to missed opportunities or unexpected losses.