#TradingMistakes101

Crypto trading can be highly profitable but also very risky, especially for beginners. Here are some common mistakes traders make:

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🔴 1. Lack of a Trading Plan

Mistake: Trading based on emotion or hype without a clear strategy.

Fix: Develop a plan that includes entry/exit points, stop-loss levels, and risk/reward ratios.

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🧠 2. Emotional Trading (FOMO & FUD)

Mistake: Buying due to FOMO (Fear of Missing Out) or selling in panic (FUD: Fear, Uncertainty, Doubt).

Fix: Stick to your plan and use data, not emotion, to make decisions.

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📉 3. Not Using Stop-Losses

Mistake: Holding onto a losing trade, hoping it’ll bounce back.

Fix: Always use stop-loss orders to limit potential losses.

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📊 4. Overleveraging

Mistake: Using too much borrowed capital (margin) without understanding the risks.

Fix: Use leverage cautiously. Crypto is volatile enough without it.

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💰 5. Ignoring Risk Management

Mistake: Putting too much capital into a single trade or asset.

Fix: Diversify and never risk more than 1-3% of your portfolio on a single trade.

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🕵️ 6. Blindly Following Influencers

Mistake: Copying trades from Twitter, YouTube, or Telegram without doing your own research.

Fix: DYOR (Do Your Own Research) before following anyone’s advice.

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📅 7. Short-Term Mindset

Mistake: Constantly chasing pumps and getting burned by dumps.

Fix: Combine short-term tactics with long-term strategy and patience.

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🪙 8. Trading Illiquid or Low Cap Coins

Mistake: Getting trapped in low-volume coins with no real demand.

Fix: Prioritize liquidity. It’s safer and easier to manage trades.

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⏰ 9. Poor Timing / Chasing Entries

Mistake: Entering a trade after a major move, too late to profit.

Fix: Wait for retracements or clear breakout confirmations.

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🧾 10. Ignoring Fees & Taxes

Mistake: Not accounting for trading fees or tax obligations.

Fix: Track all trades and consult a tax advisor if needed.

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