Here are the common mistakes in Binance spot trading, numbered for clarity:
(1) Buying at the peak!... Many traders buy the currency when its price is very high, or when it shows upward profit margins, believing it will rise further. But often the price drops shortly after, leading to losses.
(2) Lack of planned selling criteria!... Some traders buy the currency without setting a selling time. Unexpected volatility, especially downward, leaves them in fear of losing their investments, leading them either to sell at a loss or hold the currency for a long time, hoping for a recovery.
(3) Ignoring trading fees!... Every transaction has small fees. If you trade frequently without considering these costs, your profits may gradually diminish. (4) Following hype without research!... Many buy currencies simply because they are trending on social media, without verifying the strength of the project. Some of these currencies collapse quickly after a rise, resulting in investors losing all their profits.
(5) Overtrading!... Trying to profit from every small price movement can lead to unnecessary losses, especially when emotions take control.
(6) Investing all money in one currency!... If a trader puts all their money into one currency and it collapses, they lose everything. It is always safer to invest in multiple currencies to reduce risk
