When it comes to trading, no one knows about the market's future and has a crystal. Picture a room full of valuable things. People grab as much stuff as they can; when time is gone, they start to run out. Our goal in real life is to leave the room with as much value as possible. In the crypto world, this means Stablecoins, not volatile assets.
5 Common Mistakes Traders Make
1. Arbitrary Goals.💡
One of the most common mistakes that traders make is to set arbitrary goals. For instance, they say, “I will sell everything when I’m at 5 million, and after a drop, think I’ll take profits when I’m back to 2.5 million.” Fundamentally, this is a bad approach. Once certain targets have been hit, and the markets go up, greed wins.
Trading crypto is tough, but the key to success is staying away from psychological mistakes and adopting a good risk management strategy. Protect your capital, don’t set rigorous targets, and convert gains into Stablecoins to avoid the fate of 90% of traders who lose.
2. Your wallet is not real wealth 🤑
For many traders, their crypto wallet is a representation of their wealth. But that’s not true. When their portfolios increase, many spend more on luxury items, cars and vacations and don’t realize that the point behind the increased spending is to turn assets into Stablecoin while they can.This is not a marathon, it’s a “bull run” — a battlefield.
In truth, the bull run isn’t a long distance race, just a battle. It’s not when the race was over with to enjoy your profits but no one knows when that will be. That’s why it’s critical to have a clear strategy: To protect your capital convert 80–90% of your wealth into Stablecoin.
3. Risk management and emotions: a trader’s worst enemies.💯
Greed and fear are the worst enemies of traders. Risk management is crucial, but it’s often neglected due to emotional influence. When your portfolio grows, ask yourself: “If I double or triple my capital, will it really change my life? And if I lose 50–80% of my capital, how will it affect me?”
Suppose your portfolio rises to 1–2 million. You could go up to 4 million, but you could also drop to 200–300k or 500k. At 2 million, your life is already changed. Protecting this level becomes essential. Converting a portion of your portfolio into Stablecoin shields you from market downturns and allows you to grow your wealth further.
4. Rule number one: Protect your capital. 💵💵
Once a large portion of your capital is lost, recovering it becomes extremely difficult. Protecting what you’ve earned is your number one priority. Once you master this, you’ll see a significant shift in your financial life. Wait for the parabolic phase to take profits and take profits regularly. Analyze your entry points and take profits daily, ensuring you have constant control over your gains.
5. Lack of Education.🏫
It’s hard to earn from trading. Playing your dice in the market takes the proper knowledge but also a good strategy. A slight mistake, and you’re doomed.How do the financial markets work is something that many a trader needs to understand. If not, they can make bad decisions, and end up losing their money.
I hope this article is helpful ❤️🩹.
