#TradingMistakes101 Here is a comprehensive and organized summary of the most common mistakes in cryptocurrency trading and ways to avoid them:
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🔑 1. Lack of a Clear Trading Plan
Many traders enter the market without a strategy that includes entry and exit points and risk management.
**✅ Tip:** Design a trading plan before each trade, and stick to it even under psychological pressure.
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⚠️ 2. Poor Risk Management
A serious mistake is over-risking in a single trade or ignoring stop-loss points.
**✅ Tip:** Do not risk more than 1–2% of your capital on a trade. Always use a stop loss and think in terms of a clear profit/loss ratio.
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😨 3. Succumbing to Emotions – Fear/Greed/Desire for Revenge
Emotions such as panic or greed for profit and bearing losses lead to reckless decision-making.