#TradingMistakes101 - Mistakes to Avoid When Trading Cryptocurrency
Crypto trading can be highly profitable, but it also carries significant risks if you make the mistakes outlined below.
1. Trading Without a Plan
Many people buy and sell based on emotions, without a clear strategy. Lacking entry/exit plans, not setting stop-loss or take-profit orders is a recipe for losses.
2. Overtrading
You don't need to be 'always in a trade.' Constant trading can lead to loss of control, high transaction fees, and mental exhaustion.
3. FOMO & FUD
FOMO (fear of missing out) makes you buy at the peak.
FUD (fear, uncertainty, doubt) makes you sell at the bottom.
These are common psychological traps in a highly volatile market like crypto.
4. Poor Capital Management
Putting too much money into a single trade or going all-in on one coin can lead to losing your entire account after just one significant price movement.
5. Ignoring Analysis
Many people only watch the news or listen to others without checking charts, on-chain data, or reputable news sources.
📌 Advice:
Trade less but with quality.
Always have a risk management plan.
Do your own research before making decisions.