#TradingStrategyMistakes Many aspiring traders fall into the common #TradingStrategyMistakes mistakes that can quickly wipe out their capital and erode their confidence. One of the most frequent errors is the lack of a well-defined trading plan. Entering trades without clear entry and exit points, stop-loss orders, and profit targets is like navigating without a compass. Another significant mistake is overtrading, driven by emotions such as greed or the fear of missing out (FOMO). This often leads to excessive commissions and poor decision-making. Neglecting risk management is perhaps the most destructive mistake; not sizing positions appropriately or risking too much capital on a single trade can lead to catastrophic losses during adverse market movements. Additionally, many traders do not thoroughly test their strategies, relying on intuition or anecdotal evidence instead of statistical validation. This leads to strategies that may not be robust enough for real market conditions. Pursuing volatile assets without understanding their underlying fundamentals or technical patterns is another pitfall. Finally, emotional trading, allowing fear, greed, or frustration to dictate trading decisions, consistently leads to suboptimal outcomes. Discipline and adherence to a predefined strategy are crucial for long-term success.