#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. Profits will come with time and experience, but if you lose your capital early, you won't have the chance to learn or recover.

What branches from this advice?

All of the following are branches of it:

1. Capital Management:

• Don't risk more than 1-3% of your capital in a single trade.

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

2. Psychological Discipline:

• Don't chase the market (FOMO).

• Don't 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:

• Don't enter without a clear reason or plan.

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

4. Avoid High Leverage Without Experience:

• More than 90% of those who over-leverage wipe out their accounts within the first 6 months.

5. Learn to Wait:

• Sometimes, the best trade is not to trade.

Summary:

Don't ask, "How much will I make?" Instead, first ask, "How much can I lose? And how do I protect myself?"

That’s when you truly begin to transition from a gambler to a professional trader.