• Overconfidence: Description: When a trader has excessive confidence in their decision-making abilities, which can lead to taking overly large risks.
  • Overtrading: Description: Involves making an excessive number of trades within a specific time period, often due to impulsivity or constantly seeking opportunities.
  • Overleveraging: Description: Excessive use of leverage, borrowing more capital than is actually owned, which can amplify both gains and losses.
  • Overexposure:Description: Investing a disproportionate amount of capital in a single asset or sector, thereby increasing risk.
  • Ignoring Stop Losses: Description: Ignoring or modifying previously set stop-loss levels, exposing oneself to larger losses than the trader was willing to accept.