This is a fatal mistake that many traders still struggle with. I, myself, when I first stepped into the Coin Trader market, also paid a steep 'tuition' because of it. But sometimes, you have to hurt once to be awake enough to remember for a lifetime.
Many new traders get caught up in the price fluctuations and forget that trading is not a game of chance.
For example, seeing BTC rise sharply, with continuous green candles, FOMO kicks in, and you immediately open a buy order with all your capital. But you don't determine where to take profit, nor do you set a stop loss. Just a few hours later, the price reverses due to bad news or profit-taking by sharks, and your account loses 15% right away.
Trading without a plan is like going out to sea without a map or compass — you can drift for hours in the blue ocean, but when the storm comes, you will be swept away uncontrollably.
As for non-professional traders, please note:
Before entering a trade, always define 3 factors: Entry (entry point), Take Profit (profit target), and Stop Loss (cut loss level).
Carefully consider the Risk/Reward ratio, only enter a trade if the risk is less than the potential profit.
Write down your plan on paper or make a note before placing an order, so when the market fluctuates, you are not swept away by emotions.
If you lack any of the 3 factors above → Absolutely do not enter the trade.
Is there anyone who has ever been like me or even right now is still making those 'foolish' mistakes? Follow me to dissect, analyze, and untangle each mistake that new traders often stumble upon when stepping into the Crypto market.
