#TradingMistakes101

"Protect your capital before you think about multiplying it."

Why this advice specifically?

Because survival in the market is more important than 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 the opportunity 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 in a single trade.

• Allocate only a portion of your capital for trading, and keep the rest as a reserve or 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 how you feel.

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 blow their accounts within the first 6 months.

5. Learn to wait:

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

Summary:

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

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