#TradingStrategyMistakes **#TradingStrategyMistakes: Common Errors and How to Avoid Them**

Errors in trading strategies are frequent and can be costly. Some of the most common include:

1. **Lack of a defined plan**: Trading without a clear strategy leads to impulsive decisions. Solution: Define entry, exit, and risk management rules.

2. **Overexposing to risk**: Risking too much capital on a single trade can result in severe losses. Ideally, do not risk more than 1-2% of capital per trade.

3. **Ignoring market context**: Using a strategy that does not adapt to the current trend or volatility. It is key to analyze whether the market is bullish, bearish, or sideways.

4. **Not keeping a record**: Failing to document trades prevents learning from mistakes. Keep a journal to assess your performance.

5. **Emotions vs. discipline**: Fear and greed lead to closing trades prematurely or holding them too long. Automate parts of your strategy or follow your plan rigorously.

6. **Over-optimization**: Over-adjusting a strategy to past data (curve-fitting) reduces its effectiveness in real-time. Test your strategy under different conditions.

Avoiding these mistakes improves consistency. The key is discipline, risk management, and continuous adaptation.