The financial market, especially crypto, is where opportunity and risk go hand in hand. Anyone can win a few initial trades thanks to luck, but to survive and develop sustainably, one must have knowledge, the right mindset, and high discipline. Below are the 8 most common mistakes that new investors often encounter – which is also the fastest way to losses:

1. Relying on luck, random chance to start

Many people enter the market due to a few initial wins from luck. But the market never 'gives for free'. Without a solid foundational knowledge, you are just postponing your losses. Luck may help you win in the short term, but ignorance will cause you to burn your account in the long run.

2. Trading based on emotions: FOMO – FUD

Fear of missing out (FOMO), anxiety, and fear (FUD) make you make hasty decisions, not following any strategy. Without a clear method and discipline, you will get stuck in a loop of losing – holding – cutting – re-entering and continue to lose money.

3. All-in – Winning many times but losing once means losing everything

You can go all-in and win 29 trades in a row, but just one mistake – all previous achievements can evaporate. No one is right forever in the market. Risk management is vital.

4. Borrowing money to invest – Pressure makes you prone to mistakes

When you borrow money to invest, your mindset is always driven by anxiety. At that moment, you no longer have the calmness to make wise decisions. If you have never made money from the market with your own abilities, absolutely do not borrow. Learn to walk steadily before you run.

5. Lack of information when participating in the market

Many people buy altcoins just because they see others saying 'it will skyrocket', without knowing what that coin is, who develops it, what its market cap is, or if it has a development plan. When you don't understand the essence, you are not only investing blindly but also putting your trust in the wrong place. One fine day, if the coin disappears from the exchange, you will lose everything.

6. Trading too much – Losing both money and life

Many new investors get caught in the 'chart watching' spiral all day, opening too many trades just to earn a few percent profit. At first, it may seem like they are being diligent, but in reality, this is an inefficient trading style that easily falls into psychological traps and gradually erodes their accounts.

You have $10,000, trading continuously 50 trades/day, each trade losing 1% in fees – after a few days your capital has 'evaporated' by half, even though you haven't lost any trades! High-frequency trading without a clear strategy will turn you into a 'fee printer' for the exchange.

Worse, spending all your time staring at charts makes you forget important things in life: health, family, rest time. In the end, you lose both money and balance – something that no short-term profit can compensate for.

Smart trading means doing less but doing it well, not trading a lot to satisfy the addiction of 'entering trades'.

7. Using margin, leverage too early

Leverage is a sharp tool – it can help you increase profits quickly, but it is also a double-edged sword. Newcomers who do not understand how it works, and do not have enough experience, using high leverage is no different from putting themselves in the mouth of a shark. Limit its use until you truly understand the market, know how to manage risks, and have a stable trading system.

8. No clear trading plan

Not preparing is preparing for failure. Each trade needs to be clearly defined: when to enter? When to cut losses? What is the expected profit target? Where to move the stop loss? What percentage of capital for each trade? Without a plan – you will trade based on feelings, and feelings are always the enemy of profit.

The market is not a place to test your luck, but a battlefield of mindset, knowledge, and discipline. Only those who are mindful enough to avoid the 8 mistakes above can survive and develop sustainably in this tempting market. Start with humility, learn and practice step by step like a warrior and grow into a professional investor.

Wishing you success. Dr. Profit.