One of the most common mistakes among new traders is **entering the market without understanding or a clear plan**, leading to random trading or acting out of greed. Here are some key points to understand this mistake:
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💥 **1. Drifting Behind Trends Without Study**:
Many beginners buy cryptocurrencies just because they are a "trend" or have heard about a potential price increase, without any analysis or knowledge of the project or the associated risks.
> **Example**: Buying meme coins like DOGE or SHIBA at the height of the hype, then suffering losses during a sudden drop.
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💰 **2. Greed and Lack of Goal Setting**:
Some seek to achieve fantastic profits of up to 1000% in a day or a week, causing them to let a winning trade turn into a losing one while waiting for more profits.
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⛔ **3. Not Using Stop Loss**:
A beginner trader enters a trade without protecting their capital, exposing them to significant losses when the price drops sharply.
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📉 **4. Trading with Amounts You Cannot Afford to Lose**:
Some traders use all their savings or even borrow to engage in the market, causing them psychological and financial harm in case of loss.
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🧠 **5. Lack of Continuous Learning**:
Many do not read or follow market news, nor do they understand technical or fundamental analysis.
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✅ **Golden Advice**:
Start with a small amount, learn the basics of the market, and only trade what you can afford to lose. Set a clear plan and learn from mistakes without repeating them. Translated