#TradingStrategyMistakes Trading Without a Clear Plan

The mistake: Jumping in based on emotion or hot tips, without defined entry, exit, or risk rules.

Why it’s harmful: Leads to inconsistent decisions and unpredictable outcomes.

**How to fix it:**

Create a written plan specifying setup criteria, stop-loss levels, and profit targets.

Only trade setups that fit the plan.

Regularly revisit and refine the strategy.

As Investopedia puts it, “Many beginners start trading without a well‑defined strategy…rather than a structured plan” .