#TradingMistakes101

Protect your capital before you think about multiplying it.

Why this specific advice?

Because surviving in the market is more important than making a profit, especially in a volatile market like cryptocurrencies. Profit will come with time and experience, but if you lose your capital early, you won't have a chance to learn or recover.

What branches from this advice?

All of the following are branches of it:

1. Capital management:

• Do not risk more than 1-3% of your capital on a single trade.

• Allocate only a portion of your capital for trading, and keep the rest as reserves or for long-term investment.

2. Psychological discipline:

• Do not chase the market (FOMO).

• Do not seek revenge on the market after a loss (Revenge Trading).

• Stick to the plan no matter what your feelings are.

3. Respect entry and exit points:

• Do not enter without a clear reason or plan.

• Set a stop-loss before entering, and stick to it no matter what happens.

4. Do not use high leverage without experience:

• More than 90% of those who use excessive leverage zero out their accounts within the first 6 months.

5. Learn to wait:

• Sometimes, the best trade is to not trade at all.

Summary:

Do not ask "How much will I earn?", instead ask first "How much can I lose? And how do I protect myself?"

Only then will you truly start to transition from a gambler to a professional trader.