#TradingStrategyMistakes
What are "trading strategy errors"?
They are logical or technical mistakes that affect trading decisions and make the system or plan ineffective, often leading to financial losses.
The most common trading strategy errors:
| Error | Explanation | Solution |
| ❌ Lack of a clear trading plan | Starting without a written strategy or clear rules. | Formulate a comprehensive trading plan before entering the market
| ❌ Overtrading | Entering random trades without thorough analysis. | Commit to a specific number of trades according to the plan
| ❌ Absence of risk management | Not defining exit points or maximum loss limits. | Set risk limits for each trade (e.g., 1-2%)
| ❌ Trading based on emotions | Fear, greed, or the desire to quickly recover losses. | Stick to the plan and avoid impulsive decisions
| ❌ Using too many indicators (Overanalysis) | Adding too many indicators that may conflict with each other. | Focus on a few effective indicators
| ❌ Not testing the strategy | Using a strategy without testing it on historical data (Backtesting). | Test the strategy on historical data and then paper trade before real investment
| ❌ Ignoring time and economic calendar | Entering trades during quiet periods or major economic events. | Study the economic calendar and identify high liquidity times