#TradingStrategyMistakes

Common trading strategy mistakes and how they impact performance:

1. No Clear Plan

Many traders jump in without a defined strategy—no entry/exit rules, risk limits, or goals. This leads to inconsistent results and emotional decision-making.

2. Overtrading

Trading too frequently or without high-probability setups can erode capital through fees, slippage, and bad decisions. It’s often driven by boredom or greed.

3. Poor Risk Management

Risking too much on a single trade or trading without stop-loss orders exposes accounts to heavy losses. A good trader risks a small portion per trade (e.g., 1–2%).

4. Emotional Trading (Fear & Greed)

Letting emotions override logic leads to irrational moves—like panic selling or chasing profits. Discipline is key to sticking to your strategy under pressure.

5. Ignoring Market Conditions

A strategy that worked in a trending market may fail in a ranging one. Traders must adapt their approach to changing volatility, volume, and sentiment.

6. Overleveraging

Using too much borrowed capital can amplify losses as much as gains. A few bad trades can wipe out an account if leverage isn’t managed properly.

7. Chasing the Market

Entering trades late after a move has already happened—based on FOMO—leads to poor entries and losses. Patience and planning beat hype every time.