#TradingMistakes101
"Protect your capital before thinking about doubling it."
Why this advice specifically?
Because survival 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 off 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 for long-term investment.
2. Psychological discipline:
• Do not chase the market (FOMO).
• Do not take revenge on the market after a loss (Revenge Trading).
• Stick to the plan no matter how you feel.
3. Respecting entry and exit points:
• Do not enter without a clear reason or plan.
• Set a stop-loss before entering, and adhere to it no matter what happens.
4. Not using high leverage without experience:
• More than 90% of those who use excessive leverage zero out their accounts within the first 6 months.
5. Learning to wait:
• Sometimes, the best trade is not to trade.
Summary:
Do not ask, "How much will I earn?" Instead, first ask, "How much can I lose? And how do I protect myself?"
That’s when you truly begin to transition from a gambler to a professional trader.