#TradingMistakes101

#TradingMistakes101: Common Pitfalls to Avoid in Crypto Trading

Crypto trading can be rewarding, but it's also risky—especially for beginners. Many new traders make common mistakes that can lead to significant losses. Recognizing and avoiding these errors is key to becoming a more disciplined and successful trader.

1. Trading Without a Plan

Jumping into trades without a clear strategy often leads to emotional decisions. Always define your entry, exit, and risk management rules before placing a trade.

2. Overleveraging

Using too much leverage can amplify both gains and losses. While it may seem like a shortcut to quick profits, overleveraging is a fast track to liquidation if the market moves against you.

3. Ignoring Risk Management

Failing to use stop-loss orders or risking too much on a single trade can wipe out your capital. A good rule: never risk more than 1–2% of your portfolio on one trade.

4. Chasing the Hype

Buying a coin just because it's trending or pumping often leads to buying high and selling low. Do your own research (DYOR) instead of following the crowd.

5. Letting Emotions Drive Decisions

Fear and greed can cloud judgment. Stick to your plan, stay patient, and learn from each mistake.

Master these basics, and you’ll trade smarter—not harder.