5 Common Trading Mistakes Few People Share - Learn From My Mistakes

In the world of cryptocurrency and securities trading, we often hear advice like ‘Don’t FOMO, take profit, set stop loss.’ However, the real mistakes that caused me to suffer losses lie in the details that few people mention. Here are 5 mistakes I have experienced and how to overcome them, helping you avoid falling into the same trap as I did.

1. Ignore Liquidity Risk - ‘Trading In May Not Be Sold Out’ Real case: I once ‘blindly’ believed in a small market capitalization coin, with rumors of an ‘imminent explosion’ from the community. When the market rose, I was eager to take profit, but encountered a situation: buyers were insufficient, liquidity was low. Instead of recording a profit of +60%, I had to accept losses because I couldn’t sell in time. Solution: Check the transaction volume and liquidity carefully: Before placing an order, consider the activity level of the currency. If the trading volume is low or there are no ‘whales’ (large investors) participating, you are taking a gamble. Prioritize investing in currencies with good liquidity: For example, BTC, ETH, or altcoins with large trading volumes such as $SOL. This ensures that when you need to sell, you can quickly find a buyer.
2. Following the Retail Hype Instead of Capturing the Trends of ‘Whales’ Real case: Previously, I also used to be caught up in the hype on Twitter and forums. Buying in when the currency became ‘hot’ just because of the noisy crowd. However, when the price surged, I realized that large investors had long withdrawn, leaving me with a trade that no longer had growth potential. Solution: Using on-chain analysis tools: Keep track of the capital flow and activities of “whales”. These tools will help you identify when large investors begin to accumulate a certain coin, for example, ARB, LINK, before it explodes. Time your trades early: If a large amount of capital is flowing in, it could be a sign of an upcoming price uptrend, giving you an edge over 90% of other traders.
3. Trying to “Master” Too Many Strategies at Once Real case: In the early years of trading, I tried out many styles: from scalping, swing trading, to futures trading, staking, or even NFT. As a result, no strategy I implemented was ‘complete’ and the trading effectiveness was always unstable. Solution: Focus on a core strategy: Choose a strategy that suits your personality and time. For example, I found stability and effectiveness when focusing on swing trading with major currencies like $XRP, $HBAR. Improve skills gradually: Once you have mastered a strategy, you should expand into other areas if possible. Learning too many strategies at the same time only makes you confused and not specialized.
4. Placing Overly Large Bets on Mistaken Trades Real case: I made a mistake by putting too much capital into a few trades that were considered “peaks”. I only risked $500 in one trade, while in another trade I pushed up to $5,000. In fact, trading with a large amount of capital is the failed trade that caused me to suffer heavy losses. Solution: Strict risk management: Always limit the risk amount for each trade to about 1-3% of your total investment portfolio, regardless of the cryptocurrency you are trading. Establish investment rules: Always adhere to the rule of ‘never bet too much’ - this will help protect your investment capital from unforeseeable market fluctuations.
5. Overrating Short-Term Profits Real case: In the early days, I was very proud every time I achieved a short-term profit of about +20% and felt ‘smart’ when taking profits. But then I realized that patient investors holding long positions with currencies like ETH, DOT have reaped ‘breakthrough’ and sustainable profits over time. Solution: Build long-term investment mindset: Although short-term trading may bring immediate profits, to truly build wealth, you need a long-term investment vision and strategy. Accumulate when trusting a project: If you truly believe in the potential of a project, consider accumulating instead of just ‘riding the waves’ to sell when you make a small profit. Patiently waiting for the explosive moment can bring outstanding results. Conclusion The trading market not only requires you to have knowledge of technical or fundamental analysis, but also to understand how this ‘game’ operates. My mistakes are not due to lack of knowledge but to not grasp the correct risk management and market strategy. Remember, success does not come from luck but from experience and perseverance. Every mistake is a valuable lesson, and if you know how to listen, they will help you avoid unnecessary losses in the future. DYOR! (Write&Earn $BTC {spot})BTCUSDT#Write2Earn #