#TradingStrategyMistakes

One of the biggest trading strategy mistakes is relying on signals without context. Many traders enter trades just because an indicator flashes “buy” — but without confirming trend direction, volume, or market conditions, that signal can fail.

Another common mistake is over-optimizing a strategy for past data. A backtest might look perfect, but real markets are messy. If your setup only works in specific conditions, it’s not reliable.

Neglecting risk management is another major error. Even the best strategy can lead to losses without proper stop-losses and position sizing. Traders often risk too much on one trade, chasing losses or trying to “make it back.”

Also, switching strategies too quickly can be damaging. Jumping from one method to another after a few losses prevents you from collecting meaningful results and adjusting properly.

The solution? Stick to a tested plan, manage your risk, and constantly evaluate your performance — not just your profits.