#TradingMistakes101 Advice that was given to me and I share with you for those of us who are starting in Trading
$ETH
Start small, constantly educate yourself, and prioritize risk management above all."
Breaking this down:
* Start small:
* Investment capital: Do not invest an amount of money that you cannot afford to lose. Trading is risky and losses are part of the learning process. Start with a minimal amount to familiarize yourself with the platform and the market.
* Trade size: Make trades with a small size for each transaction. This allows you to learn without a mistake costing you too much.
* Constantly educate yourself:
* Basics: Learn about candlesticks, support and resistance, volume, types of orders (limit, market, stop-limit), etc.
* Technical and fundamental analysis: Understand how they are used to make decisions.
* Trading psychology: Recognize and manage your emotions (fear, greed) that can lead to impulsive decisions.
* Resources: Use educational resources from Binance, YouTube, books, reputable courses. Never stop learning.
* Prioritize risk management above all:
* Stop-loss: Always set a stop-loss on every trade. This is crucial to limit your losses if the price moves against you. It is your "parachute".
* Do not invest more than 1-2% of your total capital in a single trade: Even if you think it's a golden opportunity, limiting your exposure per trade protects your capital.
* Diversification: Do not put all your eggs in one basket.
* Plan your trade and trade your plan: Before opening a trade, decide where you will enter, where you will exit if you win (take profit), and where you will exit if you lose (stop-loss). Stick to that plan.
In summary, trading is not a scheme to get rich quickly. It is a skill that requires patience, discipline, and continuous learning. Protecting your capital is the number one priority.