5 Costly Mistakes New Traders Need to Avoid

Many new traders lose not because the market is too harsh, but because they repeatedly make basic mistakes. If you want to survive and thrive in crypto trading, keep in mind the things you should not do. Here are 5 common mistakes that can silently "blow away" your account: ❌ Mistake 1: Buying Based on FOMO – Chasing Rumors and Excitement When seeing a coin surge strongly, many people will immediately rush to buy for fear of "missing the opportunity." However, most pumps quickly cool down, as early buyers start to sell off to take profits. 👉 Lesson: Don't let FOMO (Fear Of Missing Out) control you. Be patient and wait for a clear signal and a reasonable entry point instead of chasing the crowd. ❌ Mistake 2: No Trading Plan A proper trading plan must include: entry point, stop loss ( and take profit ). Without these rules, you are just "gambling". 👉 Lesson: Always prepare before entering a trade. A trading plan is the "shield" that helps you maintain your composure during strong market fluctuations. ❌ Mistake 3: Putting Too Much Capital Into A Single Order Many newcomers often go "all-in" – putting all their capital into a trade because they are sure they are right. But just one adverse movement, and you could lose everything. 👉 Lesson: You should only risk a small portion of your account for each trade, usually 1–3%. This way, even if you lose, you still have capital to continue. ❌ Mistake 4: Neglecting Risk Management Trading is not about how much you win, but how much you keep when you lose. Professional traders always: Use stop loss to limit losses. Calculate the reasonable order volume based on the capital. 👉 Lesson: Preserving capital is more important than making a profit. When you keep your money, profits will come over time. ❌ Mistake 5: Trading Too Much – Catching Every Crab Newcomers often see price fluctuations and want to jump in immediately, leading to opening too many orders. This not only depletes the account but also makes you stressed and unfocused. 👉 Lesson: Not every fluctuation is an opportunity. Be patient and wait for setups with a high probability of winning instead of "holding onto" every price jump. 🔑 Conclusion Success in trading does not come from luck, but from discipline, patience, and strict risk management. If you avoid the 5 mistakes above and persist with your strategy, you will trade like a professional investor rather than a gambler.