#TradingMistakes101

“Protect your capital before you think about multiplying it.”

Why this specific advice?

Because survival in the market is more important than profit, especially in a volatile market like cryptocurrencies. Profit will come with time and experience, but if you lose your capital early, you won’t have a chance to learn or recover.

What branches from this advice?

All of the following are branches of it:

1. Capital management:

• Do not risk more than 1-3% of your capital on a single trade.

• Allocate only a portion of your capital for trading, and keep the rest as a reserve or for long-term investment.

2. Psychological discipline:

• Do not chase the market (FOMO).

• Do not seek revenge on the market after a loss (Revenge Trading).

• Stick to the plan no matter how you feel.

3. Respect entry and exit points:

• Do not enter without a clear reason or plan.

• Set a stop-loss before entering, and stick to it no matter what happens.

4. Do not use high leverage without experience:

• More than 90% of those who use excessive leverage blow their accounts within the first 6 months.

5. Learn to wait:

• Sometimes, the best trade is not to trade.

Summary:

Do not ask “How much will I earn?”, but first ask “How much can I lose? And how do I protect myself?”

Only then will you actually start to transition from a gambler to a professional trader.