Avoid These Trading Strategy Mistakes!
Even seasoned traders fall prey to common strategy pitfalls. One major error is over-optimization, where a strategy performs perfectly on historical data but fails in live markets due to curve-fitting. Another is ignoring risk management; without proper stop-losses and position sizing, even winning strategies can lead to substantial losses. Many also make the mistake of frequently changing strategies, never allowing one to fully develop or prove its efficacy. Lastly, emotional trading — letting fear or greed dictate decisions instead of sticking to a pre-defined plan — consistently sabotages long-term profitability. Stick to your plan and manage your risk!