#TradingStrategyMistakes Top 10 trading mistakes

Not researching the markets properly

Trading without a plan

Over-reliance on software

Failing to cut losses

Overexposing a position

Overdiversifying a portfolio too quickly

Not understanding leverage

Not understanding the risk-reward ratio

Overconfidence after a profit

Letting emotions impair decision-making

We’re going to look at each of these mistakes separately, and show you some techniques for avoiding them so that you can be better prepared during your time on the markets.

Not researching the markets properly

Some traders will open or close a position on a gut feeling, or because they have heard a tip. While this can sometimes yield results, it is important to back these feelings or tips up with evidence and market research before committing to opening or closing a position.

It is essential that, before you open a position, you understand the market you are entering intimately. Is it an over-the-counter market, or is it on exchange? Is there currently a large degree of volatility in that particular market, or is it more stable? These are some of the things you should research before committing to a position.