#TradingStrategyMistakes Recognizing common mistakes is one of the most powerful shortcuts to improving a trading strategy. Here are some of the most frequent pitfalls that can affect your results:
⚠️ Common mistakes in trading strategies
- Lack of a clear plan
Entering the market without defining objectives, entry/exit conditions, and risk management rules is like navigating without a compass.
- Not using stop loss correctly
Avoiding or misplacing stop losses can lead to significant losses. The stop is not an enemy—it's your seatbelt.
- Overtrading
Trading too frequently, without waiting for quality setups, can dilute profits and increase risk.
- Ignoring risk management
Betting everything on a single trade or not diversifying your portfolio can be deadly. Controlling position size is key.
- Confusing technical analysis with intuition
Seeing patterns where none exist or entering just because "you feel it will go up" distorts your strategy.