Many traders lose money not because the market is unpredictable, but because they repeat avoidable mistakes.
One of the most common errors is overleveraging — using more capital than you can afford to lose. While leverage can amplify gains, it can also wipe out an account quickly.
Another frequent mistake is trading without a plan. A clear strategy with entry and exit points reduces emotional decision-making. Ignoring risk management is equally dangerous; setting stop-loss orders can save your portfolio from catastrophic losses. Traders should also avoid chasing the market — reacting to every price move often leads to poor timing.
Lastly, failing to review past trades means missing out on valuable lessons. Keeping a trading journal helps identify patterns and improve decision-making.
By recognizing and avoiding these mistakes, traders can significantly improve their long-term success rate.
