Avoid these common mistakes if you don't want to blow up your account! Save this post to remember them.
1️⃣ Not using Stop-Loss: You enter a trade and do not set a loss limit. The market goes against you, and instead of accepting a small loss, you wait for it to "recover". Result: a liquidation or a massive loss. The Stop-Loss is your insurance!
2️⃣ Over-trading: Trading without a strategy, on impulse or out of boredom. Each trade has a cost (commissions) and a risk. If you trade too much, you are more likely to make mistakes and end up with more losses than gains.
3️⃣ Excessive leverage: Leverage is a double-edged sword. It can multiply your profits, but also your losses. High leverage can liquidate your position with the smallest market movement. Be conservative, especially at the beginning.
4️⃣ Following "gurus" without your own analysis: You see someone on social media recommending a coin and you jump in without researching. A good trader does their own technical and fundamental analysis. Others' recommendations are just a starting point, not the absolute truth.
5️⃣ Panic (FOMO and FUD):
FOMO (Fear Of Missing Out): Buying when an asset has already risen a lot, fearing to miss out on the profit.
FUD (Fear, Uncertainty, and Doubt): Selling out of fear when the market has a correction.
These emotions cloud your judgment. Successful trading is cold and disciplined.
Which of these mistakes have you made? Share your experience in the comments!