The financial market, especially crypto, is a place where opportunity and risk go hand in hand. Everyone can win a few trades initially due to luck, but to survive and develop sustainably, one must have knowledge, the right mindset, and high discipline. Below are the 8 most common mistakes that new investors often encounter – which are also the fastest pathways to losses:
1. Relying on luck, randomness to start
Many people enter the market thanks to a few initial lucky wins. But the market never 'gives without strings attached'. Without solid foundational knowledge, you are merely postponing losses. Luck may help you win in the short term, but ignorance will lead you to burn your account in the long run.
2. Trading based on emotions: FOMO – FUD
Fear of missing out (FOMO), anxiety, fear (FUD) leads you to make hasty decisions, not following any strategy. Without a clear method, lacking discipline, you will forever be trapped in a loop of losing – holding – cutting – re-entering and continue losing money.
3. All-in – Winning many times but losing once means losing everything
You can go all-in and win 29 trades in a row, but just one mistake – all previous gains can disappear. No one is right all the time in the market. Risk management is vital.
4. Borrowing money to invest – Pressure leads you to make mistakes
When you borrow money to invest, your mindset is always pressured by anxiety. At that moment, you no longer have enough calm to make wise decisions. If you have never made money from the market with your own ability, absolutely do not borrow. Learn to walk steadily before you run.
5. Lack of information when participating in the market
Many people buy altcoins just because they hear others say 'it will skyrocket', without knowing what that coin is, who developed it, its market cap, or if it has a development plan. When you don't understand the essence, you are not only investing blindly but also placing your trust in the wrong place. One fine day, if the coin disappears from the exchange, you will lose everything.
6. Trading too much – Losing both money and life
Many new investors get caught up in the cycle of 'watching the chart' all day, opening too many orders just to earn a few percent in profit. Initially, one might think they are working hard, but in reality, this is an inefficient trading style that is easy to fall into psychological traps and gradually erodes the account.
You have $10,000, trading continuously 50 orders/day, each order incurs 1% in fees – after a few days, your capital has 'evaporated' by half, even though you haven't lost any orders! High-frequency trading without a clear strategy will turn you into a 'fee printing machine' for the exchange.
Worse, spending all your time glued to the chart makes you neglect important things in life: health, family, rest time. In the end, you lose both money and balance – something no short-term profit can compensate for.
Smart trading means doing less but with quality, not doing more just to satisfy the addiction of 'placing orders'.
7. Using margin, leverage too early
Leverage is a sharp tool – it can help you increase profits quickly, but it is also a double-edged sword. Newcomers, who do not understand how it works, lack experience, using high leverage is like putting themselves in the jaws of a shark. Limit its use until you truly understand the market, know how to manage risk, and have a stable trading system.
8. No clear trading plan
Not preparing is preparing for failure. Each trade needs to be clearly defined: when to enter? When to cut loss? Expected profit levels? Where to move the stop loss? What percentage of capital for each trade? Without a plan – you will trade based on feelings, and feelings are always the enemy of profit.
The market is not a place to test your luck, but a battleground of mindset, knowledge, and discipline. Those who are alert enough to avoid the 8 mistakes above can survive and develop sustainably in this tempting market. Start with humility, learn and practice step by step like a warrior and grow like a professional investor.