#TradingStrategyMistakes

Here are 10 common trading strategy mistakes that can hurt your performance and how to avoid them:

1. Lack of a Clear Strategy

Mistake: Trading based on emotions, rumors, or gut feeling.

Fix: Always use a defined strategy with entry/exit rules and risk management.

2. Overtrading

Mistake: Taking too many trades, often out of boredom or FOMO.

Fix: Stick to high-probability setups. Quality over quantity.

3. Ignoring Risk Management

Mistake: Trading without stop-loss or risking too much capital.

Fix: Risk only 1–2% of your capital per trade. Always use stop-loss orders.

4. No Journal or Trade Review

Mistake: Not tracking trades to analyze performance.

Fix: Keep a trade journal and review it weekly to identify patterns and mistakes.

5. Revenge Trading

Mistake: Trying to make back losses immediately by entering impulsive trades.

Fix: Take a break after a loss. Come back with a clear head and stick to your plan.

6. Changing Strategies Too Often

Mistake: Switching strategies after a few losses.

Fix: Give your strategy enough time (at least 20–30 trades) before evaluating its performance.

7. Ignoring Market Conditions

Mistake: Using the same strategy in all markets (trending vs ranging).

Fix: Adapt your strategy to current conditions or stay out when the market isn’t favorable.

8. No Risk-Reward Planning

Mistake: Taking trades with poor risk-reward ratios (e.g., risking $100 to make $50).

Fix: Target trades with at least a 1:2 risk-reward ratio.

9. Overleveraging

Mistake: Using high leverage, especially in futures or margin trading.

Fix: Use conservative leverage and understand its impact on both profits and losses.

10. Emotional Trading

Mistake: Letting fear, greed, or hope control decisions.

Fix: Stick to your plan. Automate entries/exits where possible to remove emotion.