The Harsh Reality of Trading Without a Mentor
If you're new to crypto trading and lack a proper mentor, your chances of getting liquidated are extremely high—around 90% of the time. This is the sad truth that many beginners fail to realize until it’s too late.
When I first entered the crypto space in 2019, I was full of excitement and confidence. However, by 2020, I had to sell everything because I suffered heavy losses due to trading alone without any guidance. I made all the classic mistakes—overleveraging, emotional trading, and chasing hype.
Why Do Beginners Fail in Crypto Trading?
Lack of Proper Knowledge – Many traders jump in without understanding market trends, technical analysis, or risk management.
Emotional Trading – Greed and fear drive most decisions, leading to poor trades.
No Risk Management – Beginners often ignore stop-loss and proper position sizing, which increases their risk.
Following Hype Instead of Strategy – Many traders buy when the price is already high due to FOMO (fear of missing out) and then panic-sell during a dip.
Lack of a Mentor or Guide – Without proper mentorship, beginners make repeated mistakes and lose money.
How to Avoid Getting Liquidated
Learn Before You Trade – Study technical analysis, market trends, and risk management strategies before investing.
Follow a Risk Management Plan – Never risk more than you can afford to lose, and always use stop-loss orders.
Practice with Demo Trading – Before using real money, practice with a demo account to understand market movements.
Find a Mentor or Join a Trading Community – Learn from experienced traders who can guide you through the process.
Avoid Overleveraging – Leverage can amplify both gains and losses; beginners should use it cautiously.
Trading without knowledge is like gambling, and without proper guidance, most beginners will face liquidation. Instead of rushing into the market blindly, invest in your education and connect with experienced traders.