#TradingMistakes101

Here are the most common mistakes that are easy to encounter with cryptocurrency traders:

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🚨 1. Poor Risk Management

• High leverage trades, putting the entire account in one order.

• Not setting a stop-loss order or leaving the stop-loss order too wide.

• Using high leverage without a backup plan.

Consequences: Losing the account after a few wrong orders, a tense psychological state, and susceptibility to revenge trading.

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😵 2. Trading Driven by Emotion, Not Following a Plan

• Fear of missing out (FOMO) when prices spike sharply.

• Intense selling due to fear, uncertainty, and doubt (FUD) when the market rises sharply.

• Trading out of "boredom" and lack of clear signals.

Consequences: Low win rate, small profits - large losses, prolonged psychological stress.

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📉 3. Not Understanding Market Direction

• Short selling when the price is in a clear upward trend (against the trend).

• Buying in a downward trend without a reversal signal.

• Not analyzing multiple time frames.

Consequences: Exposure to continuous losses even when the signal "looks good".

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📊 4. Overtrading

• Continuously placing orders and not selecting opportunities.

• Jumping into trades whenever the price fluctuates slightly.

• Incurring transaction fees + losing psychological control.

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❌ 5. Not Conducting Backtesting and Keeping Trading Records

• Not verifying the effectiveness of the strategy used.

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