Whether you’re trading on eToro or a local brokerage, first-time traders often fall into these traps:
1. Trading Without a Plan
Always have entry, exit, and stop-loss defined. Don’t trade based on gut feeling or random social media posts.
2. Overleveraging
Many beginners use margin or options without fully understanding the risk. Start small and scale gradually.
3. Chasing Hot Stocks
Buying based on hype (e.g., Tesla, Nvidia) without technical support or earnings catalysts leads to losses.
4. No Risk Management
Never risk more than 2% of your capital per trade. Use alerts, limit orders, and avoid revenge trades.
5. Ignoring Fundamentals
Even in swing trading, earnings reports, debt levels, and market news matter. Combine charts with context.