#TradingStrategyMistakes Here are some common #TradingStrategyMistakes that traders—especially newer ones—often make:
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🚫 1. No Clear Plan
Jumping into trades without a defined strategy or trading plan leads to emotional decisions.
🔁 Fix: Define entry/exit rules, risk management, and goals before trading.
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🎯 2. Ignoring Risk Management
Risking too much on a single trade can blow up an account.
🔁 Fix: Use stop-loss orders, position sizing, and only risk a small percentage per trade (1–2%).
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📊 3. Over-Optimizing (Curve Fitting)
Tweaking a strategy to fit past data too perfectly can make it fail in real conditions.
🔁 Fix: Aim for robust strategies that perform well across different market conditions.
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🕒 4. Chasing the Market
Entering trades late just because the price is moving fast often ends badly.
🔁 Fix: Stick to your signals. Be patient for setups that match your criteria.
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🧠 5. Neglecting Psychology
Even good strategies fail if emotions take over—fear, greed, FOMO.
🔁 Fix: Journal your trades, build discipline, and detach emotions from outcomes.
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🧪 6. Not Backtesting
Trading without testing your strategy on historical data is flying blind.
🔁 Fix: Backtest thoroughly and evaluate with forward testing (demo or paper trades).
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🔄 7. Changing Strategies Too Often
Jumping from one strategy to another without giving it time to play out = inconsistency.
🔁 Fix: Stick with a strategy long enough to measure its performance over many trades.
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