Why Your Strategy Isn't Working: 5 Fatal Trading Risk Mistakes to Avoid
Every trader enters the market with a dream of consistent profits, often armed with a backtested strategy and the latest technical indicators. Yet, the statistics remain unchanged: nearly 95% of retail traders fail. The shocking truth is that most don't fail because of a "bad strategy." They fail because of preventable execution errors. At PFH Markets , we’ve observed that the difference between a professional and an amateur isn't the number of indicators on their screen it’s how they manage the downside. Even the most robust strategy will collapse if your risk management isn't bulletproof. Here are the five most common trading risk mistakes and how you can fix them to protect your capital. 1. Ignoring the Hard Stop-Loss A stop-loss isn't a suggestion; it’s your safety net. Many traders fall into the trap of "mental stops" or, worse, moving their stop-loss further away as price approaches it. This stems from a psychological refusal to accept a loss. ...