#TradingMistakes101

5 Common Crypto Trading Mistakes and How to Avoid Them

1.Trading Without a Plan– Many beginners jump into trades impulsively without proper research or strategy. *Solution:* Always use technical and fundamental analysis before entering a position.

2. Overleveraging – Using too much margin can lead to massive losses. *Solution:* Limit leverage to 2-5x and use stop-loss orders.

3. Chasing Pumps (FOMO Trading)** – Buying when prices are already spiking often results in buying at the top. *Solution:* Wait for pullbacks instead of chasing rallies.

4. Ignoring Risk Management*– Not setting stop-losses or risking too much per trade wipes out accounts. *Solution:* Never risk more than 1-2% of capital on a single trade.

5. **Letting Emotions Control Trades** – Fear and greed lead to panic selling or holding losing positions too long. *Solution:* Stick to your trading plan and avoid emotional decisions.

By avoiding these mistakes and maintaining discipline, traders can significantly improve their long-term success.