#TradeLessons
One of the most common mistakes I see is that people often take positions when a coin is already at or near its peak. For example, they jump into a trade after seeing a 20% price increase — either buying or selling — without any clear idea of where the peak actually is. Worse, they don’t have a plan for when to exit the trade.
Key Rules for Smarter Trading:
1. Always define your exit before you enter.
Before taking any position, you must know your exit strategy. That means mapping out your targets and stop-loss levels ahead of time. Many traders complain that “AI hits their stop-loss,” but these are usually traders working with small capital (like $5) and using high leverage (10x or more). That’s a recipe for getting wiped out.
2. Don’t chase overnight wealth — avoid high leverage.
You won’t become rich in a single night. Even if your technical analysis is solid, limit your leverage. If you must use leverage, stick to 10x or lower. Higher leverage only increases your risk of liquidation.
3. Plan your exit point.
Knowing your target and stop-loss levels is essential. Without them, you're trading blind.
4. Always use a stop-loss.
Stop-losses protect your capital and keep your emotions in check. Never skip them.
