#TradingStrategyMistakes

Trading, although potentially lucrative, is fraught with pitfalls. One of the most common mistakes is the lack of a clear trading plan, leading to impulsive decisions. Many neglect risk management, for example, by not setting adequate stop-losses, thereby exposing their capital to significant losses.

Overexposure, risking too high a percentage of one's capital on a single trade, is another fatal mistake. Emotions, such as the fear of missing out (FOMO) or persistent hope despite losses, can sabotage even the best strategies. Finally, over-analysis and over-trading, generating unnecessary transaction costs, are common traps. Learning from these mistakes is crucial for long-term success.