#TradingMistakes101
#How People make mistakes on Trading ...
Here's a summary of common trading mistakes on Binance, based on recent information:
* Trading Without a Clear Plan: Jumping into trades without a predefined strategy can lead to losses. Set entry/exit points, stop-loss levels, and risk-reward ratios before trading.
* Letting Emotions Drive Decisions: Fear, greed, and FOMO (fear of missing out) can lead to poor trading decisions. Stick to your analysis and strategy, and don't chase losses.
* Overusing Margin and Leverage: High leverage amplifies both gains and losses. Use no more than 35% margin and avoid leverage beyond 30%.
* Ignoring Technical Analysis: Learn to interpret the order book, volume trends, support/resistance levels, and price action to make informed trading decisions.
* Failing to Do Proper Research: Thoroughly research coins or tokens before investing. Understand the project's whitepaper, technology, tokenomics, and roadmap.
* Ignoring Risk Management: Always set stop-loss limits to protect your assets. Diversify your portfolio across different cryptocurrencies and asset classes to reduce risk.
* Chasing the Market: Don't buy into a cryptocurrency after it has already surged in price. Practice patience and wait for the right entry points.
