#TradingStrategyMistakes
What are "trading strategy mistakes"?
They are logical or technical errors that affect trading decisions and render the system or plan ineffective, often leading to financial losses.
Common trading strategy mistakes:
| Error | Explanation | Solution |
| ❌ Lack of a clear trading plan | Starting without a written strategy or clear rules. | Formulate a comprehensive trading plan before entering the market
| ❌ Overtrading | Entering random trades without thorough analysis. | Adhere to a specific number of trades according to the plan
| ❌ Absence of risk management | Not setting exit points or maximum loss limits. | Set risk limits for each trade (e.g., 1-2%)
| ❌ Trading based on emotions | Fear, greed, or the desire to quickly recover losses. | Stick to the plan and avoid impulsive decisions
| ❌ Using excessive indicators | Adding too many indicators that may conflict with each other. | Focus on a few effective indicators
| ❌ Not testing the strategy | Using a strategy without testing it on historical data (Backtesting). | Test the strategy on historical data and then practice trading before real investment
| ❌ Ignoring timing and economic calendar | Entering trades during quiet times or during major economic events. | Study the economic calendar and know the times of high liquidity