Trading can be a wonderful venture, but it comes with its share of dangers.
Everything that involves money comes with its risks, trading is no exception, of course.
One of the primary risks is financial loss.
The volatile nature of financial markets means that everyone suffers loss.
It's not the volatility that creates that risk, it's the unpredictability in my opinion. When a market is unpredictable, volatility can either become positive or negative for the traders.
Irrational decision-making is another pitfall; fear and greed can lead to impulsive actions that erode capital.
Patience is a very important thing when you are dealing with a market where market sentiment can change the game in no time.
Overtrading, where traders make excessive trades, often results in losses
A lot of people tend to believe that more trade means more profit which can be true sometimes but it isn't necessary all the time. Your overall profitability will depend on your strategy and the window in which you buy and sell.
Lack of knowledge is yet another issue;
trading without a solid understanding of markets and strategies can be disastrous.
I consider that to be one of the biggest mistakes that people make, they don't gain enough knowledge and venture into the market to earn money which is basically not possible if you are not knowledgeable enough.