Mistakes 1–5: Emotion
❌ #1. FOMO buying
“This will rise 100-fold too!” You see a surging coin and buy at the top. The source warns in absolute terms that a correction follows a sharp rally.
❌ #2. Panic selling
After a −20% move, you think, “Sell before it falls further!” You sell at the bottom, then watch the price rebound.
❌ #3. Revenge trading
After a loss, “I must win it back!” leads to reckless trading with a larger amount. The result can be a still larger loss.
❌ #4. Becoming intoxicated by profits
An early profit makes you think, “I am a genius!” You increase the position, and a market reversal wipes out the profits and principal.
❌ #5. Trading in an emotional state
Trading while tired, after drinking or when angry impairs judgment. The source characterizes trading in this condition as a “100% failure” warning.
Mistakes 6–10: Money management
❌ #6. Going all in
Putting all your assets into one coin ignores basic diversification. The source advises diversification across at least five assets.
❌ #7. Investing living expenses
Investing rent, food or tuition money can cause severe distress when losses occur. Use only money whose loss would not disrupt your life.
❌ #8. Investing borrowed money
Using unsecured loans or overdrafts to invest in crypto is described as the worst of the worst. The source strongly advises against it.
❌ #9. Ignoring position sizing
Putting more than 50% of your assets into a single trade concentrates risk. The guide contrasts this with professionals risking at most 2–3% per trade.
❌ #10. Ignoring fees
Frequent trading lets fees accumulate unnoticed. The source illustrates 100 trades at a 0.1% fee adding up to 10% in fees on the stated basis.
Mistakes 11–15: Strategy
❌ #11. Refusing to stop a loss
“It will rise someday” is a dangerous assumption. LUNA fell from $100 to $0.0001 in the source's example. The guide insists on having a stop-loss plan for investments.
❌ #12. Trading only on somebody else's instructions
Blindly following a YouTuber or Telegram leader saying “Go long!” is risky. The source warns that they may already hold the position and sell as you buy.
❌ #13. Looking at only one indicator
“RSI is 30, so it is oversold: buy!” Do not make a decision from one indicator alone. Consider multiple indicators and the trend together.
❌ #14. Using a strategy without backtesting
Putting an untested strategy directly into live trading skips validation. The source advises a backtest using at least one year of data first.
❌ #15. Ignoring market conditions
Looking only at coins while ignoring interest rates, the dollar index and equities misses the broader environment. Bitcoin is strongly connected to macro conditions in the guide's analysis.
Mistakes 16–20: Technical precautions
❌ #16. Using high leverage
The source compares a beginner using 20x or 50x leverage to going all in at a casino, and advises beginners to start at 3x or below.
❌ #17. Ignoring security
Examples include failing to enable 2FA, reusing passwords and keeping screenshots of a seed phrase. A single security breach can cost all your assets.
❌ #18. Failing to report taxes
Failing to report taxable crypto gains can lead to penalties. Comply with the applicable law.
❌ #19. Buying unverified coins
The source warns about obscure coins outside CoinMarketCap's top 500, using the claim that 99% disappear, and advises starting with established names such as BTC and ETH.
❌ #20. Keeping no records
Without a trading journal, you can keep repeating the same mistakes.
Solutions: Five principles for beginners
✅ The source's five beginner principles
1. Invest only money you can afford to lose.
2. Do not risk more than 2% of assets on one trade.
3. Set a stop for every position.
4. Study for at least three months before trading live.
5. Alternatively, delegate to AI.
🃏 AI trading and beginner mistakes
The original guide promotes its AI as avoiding all 20 mistakes.
View its real-time trading results, described as free from emotion.