#TradingMistakes101 TradingMistakes101 - Mistakes to Avoid When Trading Cryptocurrency
Crypto trading can be highly profitable, but it also carries significant risks if you make the following mistakes.
1. Trading Without a Plan
Many people buy and sell based on emotions, lacking a clear strategy. Not having an entry/exit plan, and failing to set stop-loss or take-profit orders can lead to losses.
2. Overtrading
You don’t need to be “always in a trade.” Constant trading can lead to losing 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) causes you to sell at the bottom.
These are common psychological traps in a volatile market like crypto.
4. Not Managing Capital
Putting too much money into one trade or going all-in on one coin can wipe out your account after just one strong market movement.
5. Ignoring Analysis
Many people only look at news or follow 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.