🚨 Warning: The Most Dangerous Mistake Beginner Traders Make (Are You Making It?) 🚨
Three months ago, one of my friends lost his entire investment portfolio due to a simple mistake that could have been avoided. He fell into the trap of 'fear of missing out' (FOMO), chasing green candles and buying at the highest price.
I want to make sure this doesn’t happen to you.
The most dangerous mistake a beginner makes is not having an exit strategy.
You can’t just buy a coin hoping its value will skyrocket. You need a plan to determine when to take profits, and more importantly, when to cut your losses.
Here’s my simple three-step strategy to avoid this:
* Set a target: Before buying, define your profit target. Is it 20%? 50%? Set your take-profit order as soon as you execute the buy order. This removes emotions from trading.
* Use a stop-loss order: This is your safety net. Set a maximum acceptable loss (e.g., 5% or 10% below the entry price) and set a stop-loss order. This protects you from sudden crashes.
* Stick to the plan: The hardest part. Once your orders are set, walk away. Don’t let yourself be tempted to cancel the stop-loss order 'just in case' it recovers. A small loss is better than a total wipeout.
Don’t let your emotions control your trades. The effective strategy