#TradingMistakes101

Protect your capital before you think about multiplying it.

Why this advice specifically?

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 out from this advice?

All of the following are branches of it:

1. Capital Management:

• Do not 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:

• 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.

4. Do not use high leverage without experience:

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

5. Learn to wait:

• Sometimes, the best trade is not to trade.

Conclusion:

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

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