MISTAKES MADE BY EVERY BEGINNER!!
Quality over Quantity
Most beginners have the mentality to trade daily, but it's wrong. Instead, we should observe the market daily. Every day, the market gives hints for the next day, as it seems like it's trying to complete a puzzle. Instead of actively trading, we should focus on market observation. Attempting to trade too frequently often results in capital losses. The number of trades doesn't matter as much as the ratio of profitable trades to total trades. It's okay to trade once a week or even not at all for a month. This market has the potential to make one trade equivalent to your monthly income. Resisting the urge to make wrong trades is where the real profit lies.
Revenge Trading
Revenge trading means trying to recover losses. It's essential to understand that not every trade can be profitable. Over time, you'll realize this fact, but in the beginning, it's hard to accept. Beginners often attempt to turn their losses into profits, breaking their own rules and disregarding analytics, which leads to further capital losses. Survival in the market is more important than immediate profit. As long as you survive, you have a chance to make a profit.
Leverage
The best part of the futures market is that it provides leverage, but it's also the worst part. Whether it's the best or worst depends entirely on us. Leverage is like a tourist attraction; everyone is drawn to it in the futures market. It's enticing that with just $10, we can trade as if we have $50, $100, $200, or even $1,000. However, we often forget about the associated risks. When we take 10x leverage, our capital can double if the coin increases by 20%, triple if it increases by 30%, and so on. But we neglect the fact that the coin can also drop by 10%, leading to a complete loss of our investment. So, please be cautious when selecting leverage.