1. Strategy risk
The trading edge can weaken or disappear as market conditions change.
2. Leverage risk
Borrowed exposure can magnify small market moves into large account losses.
3. Overfitting
A model can look excellent on historical data because it was tuned to noise rather than a durable pattern.
4. Execution risk
Spread, slippage, latency and liquidity can make live results worse than simulations.
5. Broker and custody risk
Trading performance is separate from the risk associated with the entity holding or executing on your capital.
6. Fee drag
Subscriptions, commissions and performance fees reduce the return you actually retain.
7. Operational risk
Software, VPS, API, connectivity or copying failures can interrupt intended execution.
How to reduce avoidable risk
Verify live performance, understand drawdown and leverage, identify the broker and legal entity, read withdrawal and fee terms and begin with an allocation small enough to survive being wrong.