#TradingStrategyMistakes

Many trading strategy mistakes stem from a lack of discipline and thorough preparation. A common pitfall is trading without a well-defined plan, leading to impulsive decisions based on emotion rather than objective criteria. Poor risk management, such as not using stop-loss orders or risking too much capital per trade, can quickly wipe out an account.

Over-optimization during backtesting, where a strategy is made to fit historical data perfectly but fails in live markets, is another trap. Furthermore, succumbing to emotions like fear and greed often leads to chasing losses or exiting winning trades prematurely. Neglecting to keep a trading journal to review performance and learn from mistakes also hinders consistent improvement.