MOST TRADERS LOSE MILLIONS BECAUSE OF THESE 6 MISTAKES! šØ
Learn from them and avoid the traps that can drain your wallet.
1/6 Using the Wrong Stop Loss š«
Many traders use automatic stop losses but can get stopped during sudden market shifts or "liquidity grabs," where prices dip below support before quickly rebounding.
š” Solution:
Use a candle close-stop loss instead, which activates only if a candle closes below a specific level, helping you avoid being stopped out by temporary dips.
2/6 Not Taking Partial Entries š
Investing all your money in one price point can be risky in a fast-changing market.
Instead, consider spreading your investment across different prices.
For instance, with $100, invest $30 at the current price, $30 at a slightly higher price, and $40 at an even higher price.
š” Why it Works: This strategy reduces risk and provides flexibility.
If prices rise quickly you can forget later purchases to minimize potential losses.
3/6 FOMO-ing into Pumps š
It's tempting to invest in popular coins, but this often means prices are already high.
Buying during a spike can lead to overpaying and subsequent drops. Many new coins may rise temporarily but lack long-term value.
To avoid FOMO, focus on a few reliable projects. Do your research and resist chasing every price increase. Invest wisely rather than getting caught up in the excitement.
4/6 Catching Falling Knives šŖ
A "falling knife" refers to a cryptocurrency rapidly losing value due to issues like lack of usefulness or poor management.
Traders might buy these coins anticipating a bounce back, but they often continue to decline.
š” Stay Cautious: Avoid coins with sharp, consistent drops unless you have strong evidence they'll recover.
Fast price drops can indicate serious long-term problems. Focus on projects with solid foundations rather than overhyped coins lacking real value.
5/6 Ignoring Trading Fees šø
š” How to Save: Use limit orders instead of market orders to lower fees.
6/6 Ignoring the Trend
Always follow trend
