7 Rules to Avoid Losing Money on an Exchange in Your First Year
First-year losses almost never come from a "bad market" — they come from the same handful of mistakes. Here are seven rules that protect you from most of them.
1. Only invest spare money
Not borrowed money, not your rent money and not your emergency fund. If you might need the money in a month, any drop will force you to sell at a loss.
2. A stop-loss on every trade
If you trade, set the stop-loss the moment you enter, not "later". You must never move it further from the price — only closer, to lock in a result. How to choose it is covered in take-profit and stop-loss.
3. Small risk per trade
Position size is calculated from the stop: how much you lose if it's triggered. A common guideline is 1–2% of your account. That way, even a streak of five losing trades in a row won't destroy your deposit.
| Account | 1% risk | 2% risk |
|---|---|---|
| $500 | $5 | $10 |
| $1,000 | $10 | $20 |
| $3,000 | $30 | $60 |
The formula is in how to calculate position size.
4. No leverage
Leverage makes losses just as large as profits, and during a sharp move your position gets closed forcibly. In your first year, use only your own money. More in leverage explained simply.
5. Don't believe promises of returns
- A promised fixed return is the number one sign of scammers.
- They ask you to send money to a "manager's" card or wallet.
- They rush you: "this offer is for today only".
- They ask for SMS codes, your seed phrase or screen access.
How to recognize these schemes is covered in the lesson "How to avoid falling for scammers".
6. Keep a journal
Write down every trade: why you entered, where your stop was and how you felt. After a month, you'll see which mistakes keep repeating. A template is in trading journal.
7. Don't revenge trade
After a loss, you want to "win it back" right away — with a bigger position and no plan. That's the fastest way to lose your account. The rule: after two or three losing trades in a row, take a break until the next day. More in how not to lose your deposit to emotions.
Aspiro Trade — signals on 45 assets, each with an entry, take-profit and stop-loss included. First month free.
- Spare money only, and no leverage.
- A stop-loss on every trade, 1–2% account risk.
- Promises of fixed returns are a sign of scammers.
- A journal, and a break after a losing streak.
Frequently asked questions
What is a reasonable risk per trade?
A common guideline is 1–2% of your account per trade. This means that if your stop-loss is triggered, you lose no more than that share. For beginners, it's better to stay near the lower end.
Can I trade without a stop-loss if I keep an eye on the price?
No. The price can move sharply while you're asleep or distracted, and in the moment fear stops you from closing a loss. Set the stop-loss as soon as you open the trade.
Why are beginners advised against leverage?
Leverage magnifies both profits and losses. A small move against you can get your position closed forcibly, and the deposit is lost very quickly.
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