Don't make these 3 trading mistakes

Trading is 90% planning 10% holding on for dear life. In this meme-stonk world, even the best of us have made these mistakes:

1.     Not having a plan: The #1 mistake most traders make is not having a plan or not following one.

Try this instead: Avoid FOMO by setting up a paper trading account to simulate buying and selling without risking real money.

2.     Overtrading or revenge trading: You make a few good trades, have a decent P&L, and instead of calling it a day...you continue trading. Before you know it, your P&L is in the red; you’re getting emotional and making revenge trades (i.e., forcing trades after a big loss).

Try this instead: Follow your stop-loss plan, step away from your trading to regain control of your emotions, and, if necessary, reassess your trading plan.

3.     Scaling up too fast: Your P&L is up $200 a day, and you get cocky and decide to add a zero to the end of that position. The problem with scaling up positions too fast is that it involves a lot more risk and stress that we're ill-equipped to handle.

Try this instead: Stick to the original plan. Put aside a certain amount of money to trade each month, increase it incrementally over time to allow yourself to prepare for proportionally bigger losses, and minimize emotional trading.