Nemo is Real

Planning and Analysis Mistakes :
Trading without a plan: Many traders enter the market without a clear strategy, including defined entry and exit points, which often leads to impulsive and inconsistent results.
Insufficient research: Relying on gut feelings, hot tips, or social media buzz rather than conducting thorough fundamental and technical analysis can lead to poor decision-making.
Chasing performance: Falling victim to the "fear of missing out" (FOMO) and buying assets that have already seen strong performance often means entering a market near its peak, just as the "smart money" is exiting.
Over-reliance on software: While helpful, automated systems lack human judgment and the ability to adapt to unforeseen market changes unless programmed to do so, requiring manual monitoring.
Risk and Money Management Mistakes :
Ignoring risk management: Failing to plan for losses is a critical error. This includes not setting stop-loss orders to automatically exit a losing position, which can result in a total wipeout of capital.
Taking oversized positions: Risking too much of your capital on a single trade (e.g., more than 1-2% of your account) can lead to massive, catastrophic losses if the market moves against you.
Overleveraging: While leverage can amplify gains, it magnifies losses just as much. Inexperienced traders often use excessive leverage, putting their entire account at risk from small price movements.
Letting losses run: Driven by hope or an unwillingness to admit a mistake, traders often hold onto losing positions for too long, hoping for a reversal, which can turn a small, manageable loss into a significant one.
Poor risk-to-reward ratio: Entering trades where the potential loss is equal to or greater than the potential gain means you need a very high win rate to be profitable long-term. Aim for a ratio of at least 1:2 or 1:3 (risking one part to gain two or three parts).
Psychological and Discipline Mistakes
Emotional trading: Allowing emotions like fear, greed, anger, and overconfidence to dictate decisions is a primary cause of failure. Trading decisions should be based on objective analysis and a pre-defined plan.
Revenge trading: After a loss, attempting to immediately jump back into the market to "get even" typically results in more losses because the trader is not in a sound emotional state to make rational decisions.
Overtrading: Feeling the constant need to be in the market and taking too many positions can lead to exhaustion, higher transaction costs, and a focus on quantity over quality setups.
Not using a trading journal: Without tracking trades (both wins and losses, including the emotional state at the time), it is difficult to identify recurring patterns of mistakes and refine one's strategy.