#TradingStrategyMistakes Here are some common #TradingStrategyMistakes traders often make — whether you're new or experienced, avoiding these can save your portfolio:

🔁 1. Over-Optimization (Curve Fitting)

Creating a strategy that works perfectly on historical data, but fails in live markets.

Tip: Use out-of-sample testing and walk-forward analysis.

📉 2. Ignoring Risk Management

Great strategies fail without proper position sizing or stop-loss rules.

Fix: Use max drawdown, risk/reward ratios, and daily risk limits.

🧪 3. Not Testing Across Market Conditions

A strategy that works in a bull market may fail in a bear market.

Solution: Test across different volatility and trend environments.

🤖 4. Over-Reliance on Indicators

Indicators lag; relying solely on them often gives poor entries/exits.

Best Practice: Combine price action, structure, and context.

🕒 5. No Clear Exit Strategy

Entering is easy. Exiting with profit — not so much.

Pro Tip: Plan exits before entering the trade: TP, SL, time-based exits.

😰 6. Emotional Trading Overrides Strategy

Deviating from your plan due to fear, greed, or FOMO.

Fix: Automate or journal your trades to stay accountable.

🔍 7. Insufficient Backtesting

Launching a strategy after 20 trades of backtesting? That’s not enough.

Tip: Aim for hundreds of trades across various assets and periods.