#TradingStrategyMistakes Common Trading Strategy Pitfalls

Even the most well-intentioned trading strategies can fall victim to common mistakes. One major pitfall is a lack of a clear plan. Many traders jump in without defined entry/exit points, risk management, or profit targets, leading to impulsive decisions. Emotional trading—letting fear or greed dictate moves—is another huge trap, often resulting in chasing losses or cutting winners too short.

Ignoring risk management is a recipe for disaster; failing to set stop-losses or risking too much capital per trade can quickly wipe out an account. Lastly, overtrading due to impatience or a desire to "make up" for losses often leads to excessive fees and poor decision-making. Successful traders learn from these errors, sticking to their plans and managing emotions.