Common Misunderstandings of Trading Strategies for #交易策略误区 :
• Over-optimization: Frequently adjusting parameters to fit historical data, resulting in the strategy failing in real-world applications.
• Ignoring risk: Focusing solely on profits without setting stop-losses or having reasonable position management, leading to significant losses on a single trade.
• Blindly following trends: Copying others' strategies without considering one's own risk tolerance and market adaptability.
• Pursuing perfection: Trying to catch every market wave, which increases the error rate due to overtrading.
• Lack of review: Failing to periodically verify the effectiveness of the strategy, continuing to use ineffective logic over the long term.