* **Trading out of fear (FOMO):** Panicking and buying immediately when a coin’s price is rising rapidly is a common mistake. Don’t enter without research and according to your strategy. The excitement fades, but the loss remains.
* **Trusting thoughtless influencers:** Don’t invest in a coin just because someone said it will rise significantly soon. Do your own research (DYOR). The responsibility for your money lies with you.
* **Starting futures trading right away:** Trading on 10x or 20x leverage might seem attractive, but it is very risky. One mistake can wipe out your entire balance. Learn spot trading first, then gradually move to futures.
* **Clicking on fake airdrops:** "Get free tokens!" If it sounds too good to be true, it probably is a scam. Never connect your wallet to suspicious links.
* **Investing all your money in a single coin:** Cryptocurrency is not a lottery. Putting all your money into a single token is akin to gambling. Diversify your portfolio and reduce risk.
* **Not practicing risk management:** Risk only a small portion of your total portfolio (for example, 1-2%) on each trade. Even good setups can fail. Protect your investment first, and profits will come later.
* **Focusing on low-volume coins:** Trading in high-volume coins like BTC, ETH, SOL, XRP is relatively safe as they have higher liquidity. Low-volume coins can experience sudden large price changes.
* **Chasing cheap things, buying strength:** Buy coins that are breaking resistance and consistently making new highs. Buying falling coins just because they are cheap can be detrimental.
* **Not placing strict stop losses on meme coins and new listings:** Meme coins and new tokens can be very risky. Trade them quickly and set strict stop losses to avoid significant losses.
* **Overtrading on small time frames:** 5-minute or 15-minute charts can force inexperienced traders to make emotional decisions. It’s better to focus on 1-hour or 4-hour charts, which provide clearer and stronger signals.
* **Not respecting key support and resistance levels:** The best entry point is when a coin is near support with a clear stop loss. Entering in between levels without any is risky.
* **Being disorganized - not having a plan for each trade:** Set your entry point, take profit target, and stop loss before each trade. And then stick to that plan. Trading without a plan is akin to gambling.
* **Not keeping an eye on news and listings:** Major news about Binance listings, partnerships, or projects can lead to significant price changes for a coin. Stay updated to avoid getting caught off guard.
* **Not accepting losses calmly:** Losses are a part of every trader's journey. No one wins 100% of the trades. The goal should be to have overall profits exceed losses.
* **Not following the trend, going against it:** If the market is going up, focus on buying, and if it’s going down, short or stay away.
These are common mistakes you can avoid to improve your trading on Binance and reduce the risk of losses. Always remember that crypto trading involves risks, and you should only risk what you can afford to lose. Do your own research and trade wisely.
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