The 4 Biggest Mistakes Traders Make (And How to Avoid Them Like a Pro)

Most traders don’t lose because of bad luck. They lose because they repeat the same mistakes over and over. Tradomate’s screener helps you avoid these blunders, not with guesswork but with smart tools.

Ritvik Dashora
Written by Ritvik Dashora
June 18, 2025 5 min read
The 4 Biggest Mistakes Traders Make (And How to Avoid Them Like a Pro)

Trading feels thrilling… until your portfolio starts looking like a horror story.

But here’s the truth: Most traders don’t lose because of bad luck. They lose because they repeat the same mistakes over and over.

In this guide, we’ll help you avoid these blunders, not with guesswork but with smart tools like the Tradomate Screener. Its AI-powered filtering lets you screen like a pro without needing to speak in code! (Pretty cool, right?)

Now let’s dive in on what to look out for!

Mistake #1: Chasing Headlines Without Reading Sentiment

For example, you see this headline :

Hero MotoCorp delivers record-high Q4 sales.”

Sounds bullish, right? So you jump in.

But the next day, the stock drops. What happened?

Yes, sales were high, but their profit margins were down, and the management gave a cautious outlook for the next quarter.

The headline looked good, but the underlying sentiment was weak. The market didn’t just read the numbers; it read the tone.

What smart traders do: They check news sentiment analysis on Hero MotoCorp screener on Tradomate.one to check the mood, not just the message. Because not all good news is bullish.

Mistake #2: Trading Without a Setup (AKA Vibes Don’t Count)

Winging it by trading random stocks? That’s not a strategy. It’s a shortcut to regret.

Smart traders use screeners and back their moves with real data, trends, and context. Not just gut feeling. They dive deep into company analysis to make confident decisions.

For example, if you’re looking to trade in the FMCG sector and are interested in large cap companies like HUL screener, You can get a complete overview of the company, simply by googling HUL Screener or searching for the company directly on Tradomate. Its past performance, news and impact, financials and more will be available to help you trade intelligently.

You can also screen stocks on the entire FMCG industry by simply typing in your conditions on Tradomate Screener like “Show stocks with positive news sentiment and price above 50 EMA in the FMCG sector” and Tradomate AI will immediately generate those conditions for you. No code, no complicated jargon, only smart screening.

Mistake #3: Letting Emotions Decide

How many times have you exited at +2% and watched the stock fly another 20%? Or worse held onto a loser, praying it bounces back? All because you let your emotions get the best of you.

Before you jump in to enter/exit in excitement, let logic lead. Check the company’s financials. Study the trends.

For Example - Use Campus screener on your favourite trading mate to see how the company is performing, from its financials to past performance to news-driven sentiment. That way, you’ll know when to enter, hold, and exit based on data, not impulse.

Mistake #4: Ignoring Risk Management

A common mistake is jumping into trades with zero downside planning. No stop-loss, no idea of past volatility, and definitely no clue what the company’s financials look like. Smart traders don’t guess they assess.

Before entering a trade, they look at everything on the company : revenue trends, margin shifts, news sentiment, and price movements. Even when you read news, don’t rely solely on headlines. Dig deeper. This isn’t just research. It’s risk management!

That’s how you make informed, low-risk trades backed by logic, not luck.

Final Thoughts:

Mistakes happen to every trader. What matters is learning from them and making smarter decisions moving forward. Consistency, discipline, and using the right tools to back your trades can make all the difference in your trading journey.

If you want to take your trading to the next level. Start screening your stocks and explore detailed company information with Tradomate Screener today, the intelligent way to trade with confidence!

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