#TradingStrategyMistakes Here are some common #TradingStrategyMistakes that traders—especially newer ones—often make:
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🚫 1. No Clear Plan
Entering trades without a defined strategy or exit rules.
Trading based on emotion or news without a backtested approach.
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💸 2. Overleveraging
Using too much margin or leverage amplifies risk.
A small market move against you can wipe out your capital.
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🔁 3. Overtrading
Taking too many trades in a short time, often from boredom or FOMO.
Leads to increased transaction costs and emotional fatigue.
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🔮 4. Chasing the Market
Jumping into trades after big moves, hoping the trend will continue.
Often leads to buying tops and selling bottoms.
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📉 5. No Risk Management
Ignoring stop-losses or risking too much per trade.
Professionals typically risk 1–2% of capital per trade.
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📊 6. Lack of Backtesting
Using strategies that haven’t been tested on historical data.
Leads to reliance on hope rather than evidence.
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😡 7. Emotional Trading
Revenge trading, fear, greed—all undermine discipline.
Consistency > emotions in trading.
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🧠 8. Ignoring Market Conditions
Using the same strategy in all environments (e.g., trending vs. ranging).
Adaptation is key to long-term success.
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🧮 9. Ignoring Position Sizing
Same size trades regardless of volatility or conviction.
Smart sizing can protect capital and improve returns.
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🔄 10. Changing Strategy Too Often
Not giving strategies time to play out.
Switching after a few losses can sabotage long-term edge.
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Would you like a checklist or infographic version of this to use on social media or for quick reference?