#TradingStrategyMistakes

Timing the market rarely works: With equities near all‑time highs, trying to buy dips or sell tops often fails. Studies show S&P 500 rarely trails its highs by more than 10% over a decade . Investing steadily—e.g., dollar‑cost averaging—and focusing on quality companies is a more reliable strategy.

Beware of FOMO: Buying into hype—especially in sectors like crypto or AI—can backfire. Traders who chase big winners often get caught in corrections .

Portfolio rebalancing is essential: High-growth stocks (e.g. Nvidia, AI stocks) can skew allocations. Regular rebalancing and tax-loss harvesting help manage risk .

Emotional trading is a top killer: Barry Ritholtz stresses avoiding decisions driven by fear or greed—he likens investing to tennis: success comes from not making mistakes .