⚠️ Top 5 Mistakes to Avoid in Trading

Trading can be a powerful way to build wealth — but for beginners, it's easy to fall into common traps. Avoiding these mistakes can drastically improve your learning curve and protect your capital.

1️⃣ Not Having a Trading Plan

Many new traders jump into the markets without a plan. This is one of the fastest paths to failure.

• 📌 Why it's a problem: Without clear rules, you're likely to make emotional decisions.
• 🧠 What to do instead: Create a plan with entry/exit rules, risk management, and position sizing before placing your first trade.

2️⃣ Ignoring Risk Management

No matter how good your strategy is, poor risk management can wipe you out.

• 🚨 Set stop-loss levels: Always define how much you're willing to lose per trade.
• 📈 Use take-profits: Know where you’ll exit to lock in profits — don’t get greedy.
• 💰 Risk only a small %: Most pros never risk more than 1-2% per trade.

3️⃣ Blindly Following Others’ Advice

Copying trades from random social media accounts won’t make you profitable.

• 🧐 Why it’s risky: You don’t know their logic, strategy, or risk profile.
• 🔍 What to do: Learn to trust your own analysis — it builds consistency and confidence.

4️⃣ Not Investing Enough in Education

Trading is a skill — not a guessing game. And skills require training.

• 📚 Study regularly: Markets evolve. Stay updated with strategies, macro events, and risk tools.
• 🎓 Get mentored: Learning from experienced traders shortens your path to profitability.

5️⃣ Letting Emotions Take Over

Fear, greed, and impatience are the enemies of every trader.

• 🧊 Stay calm under pressure: Use predefined rules to eliminate emotional reactions.
• 📆 Take breaks: Walk away when things get heated. Come back with a clear mind.

🧠 Want a Safe Way to Practice Before Going Live?

The best way to test your strategy — and your mindset — is to trade with a prop firm. These firms let you manage real capital after passing a challenge, so you can build confidence without risking your own money.

👉 Explore top firms like FTMO, Apex, and Topstep below:

🎯 Ready to Trade Like a Pro?

At TNG Institute, we help beginner and intermediate traders develop a structured approach to succeed with confidence. Our live coaching is tailored to help you pass prop firm challenges and build consistent results.