These mistakes must not be made, the consequences are very serious!
1. High leverage and all-in trading
Many beginners tend to use excessively high leverage and prefer to invest all their funds, while the margin in their accounts is insufficient to support such operations, leading to easy liquidation.
2. Greed or unwillingness to cut losses
After making some profits, they often become greedy and are unwilling to sell in a timely manner, always hoping for more gains, only to watch the price fall back, or even go to zero. Alternatively, after incurring losses, they may be reluctant to cut losses in time out of unwillingness, resulting in further losses.
3. Improper position management
When opening positions, they often invest all their funds into a single trading target. When that target is trapped, even if they discover other potential targets, they have no extra funds to operate with, just like putting all eggs in one basket.
4. Blindly following trends
Seeing others making huge profits through high leverage, they impulsively want to get rich quickly, investing all their funds without thinking, and this often marks the beginning of their troubles.