#TradingStrategyMistakes

Traders often make mistakes such as lacking a plan, ignoring risk management, overtrading, being emotional, and being overconfident. Traders without a plan often enter the market impulsively and lose capital. Ignoring stop-loss and proper position sizing leads to significant losses. Overtrading—especially revenge trading—erodes results through costs and poor decisions. Emotions like fear and greed disrupt strategies. Overconfidence leads to overleveraging and excessive diversification. Beginner traders also frequently switch strategies in pursuit of a nonexistent 'holy grail.'