#TradingStrategyMistakes #TradingStrategyMistakes
One common mistake in trading strategies is overtrading—making too many trades without proper analysis, leading to unnecessary losses. Another is neglecting risk management, like ignoring stop-loss orders, which can wipe out capital quickly. Traders often rely too heavily on emotions, causing impulsive decisions instead of following a plan. Lack of diversification is also risky, as putting all funds into one asset increases vulnerability. Additionally, failing to backtest strategies before live trading means unknown performance under real conditions. Finally, chasing trends late or holding losing positions too long can damage profits. Avoiding these mistakes improves long-term trading success.