#TradingStrategyMistakes Trading in financial markets requires not only knowledge and experience but also consistent adherence to a proven strategy. One of the most common mistakes made by investors is the lack of a clearly defined action plan. Many traders start trading without a specific system, which leads to chaotic decisions and losses.

Another mistake is changing strategies too frequently after a few unsuccessful trades. Lack of patience and discipline poses a serious threat to long-term effectiveness. Investors should test their strategies on historical data and stick to established rules.

Equally important is the mistake of ignoring risk management – failing to set stop losses or over-positioning can quickly wipe out an account. It is also advisable to avoid emotional decisions driven by greed or fear.

Understanding and avoiding these mistakes significantly increases the chances of success in trading.