#TradingStrategyMistakes Many traders fall into the same traps when building or executing a trading strategy. Here are some common mistakes to avoid if you want to improve your results:

1. Lack of a Clear Plan

Jumping into trades without a defined strategy or exit plan is a recipe for disaster. Always set your entry, stop-loss, and take-profit levels.

2. Overtrading

More trades don’t equal more profits. Overtrading often leads to emotional decisions and increased risk exposure.

3. Ignoring Risk Management

Never risk more than 1-2% of your portfolio on a single trade. Proper position sizing is key to long-term survival.

4. Revenge Trading

After a loss, some traders chase the market emotionally. This usually leads to bigger losses. Stay disciplined and stick to your plan.

5. Lack of Backtesting

If your strategy hasn’t been tested on historical data, you’re gambling, not trading. Always backtest before risking real money.

6. Failing to Adapt

Markets evolve. A strategy that worked last year might fail today. Monitor performance and be ready to adjust.

7. Ignoring Fundamentals or News

Even technical traders must stay aware of major economic events. News can invalidate your setup in seconds.

8. Chasing Hype

FOMO trading based on social media trends or pump-and-dump signals leads to buying high and selling low.

💡 Tip: Track your trades in a journal. Review what worked and what didn’t. Over time, you’ll build discipline and learn from your own mistakes.

Stay smart, stay patient. 📉📈