Perp Trading with Cwallet | Top 10 Common Beginner Mistakes in Trading

Many beginner traders fail not because they lack market knowledge, but because they repeat the same small mistakes over and over again. Perpetual futures amplify these mistakes through leverage, turning simple errors into meaningful losses.

In this guide, we’ll walk through the 10 most common mistakes beginners make in perp trading, explain why they matter, and show you how to avoid them on Cwallet. Knowing what not to do is often more valuable than knowing what to do.

P.S.. If you’re new here, please read the previous articles in the “Perp Trading with Cwallet” series to get ready to start trading!

♻️ Referrals: 

1️⃣ Perp Trading with Cwallet | What Are Perpetual Futures Contracts? A Beginner’s Guide

2️⃣ Perp Trading with Cwallet | Crypto Trading Terms Every Beginner Must Know

3️⃣ Perp Trading with Cwallet | How to Open Your First Order Step by Step

Mistake #1: Using High Leverage Too Early

High leverage looks exciting. It promises large profits with little money. But it also means getting liquidated much faster.

If you’re trading with 20× or 50× leverage, even a tiny move against you can wipe out your position.

Better approach: Start with 2×–5× leverage. Your goal as a beginner is survival and consistency, not hitting jackpot trades.

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Mistake #2: Not Using Stop Loss and Take Profit

Without SL and TP, trades are run by emotion instead of logic. Many beginners hold losers too long and close winners too early.

Cwallet allows you to set Stop Loss and Take Profit at the moment you open a trade — use them.

Think of these tools as seatbelts for trading:

• Stop Loss → limits downside
• Take Profit → protects profit

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Mistake #3: Ignoring Funding Rates

Funding rates may look small, but they matter when positions are held for many hours or days.

If you’re paying funding repeatedly, it slowly eats into your margin.

Better approach: Before entering a trade, always check:

• Is funding positive or negative?
• When is the next funding timestamp? Check the Founding Rate Countdown.
• Is your strategy short-term or long-term?

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Mistake #4: Trading Without Understanding Liquidation

Many beginners confuse loss with liquidation — they are not the same.

• Loss = your trade went wrong, but you can recover
• Liquidation = the system forcibly closes your position to prevent further losses

Liquidation happens when your margin is no longer sufficient to support your position.

Key habit: Always check estimated liquidation price BEFORE confirming an order.

Cwallet shows this preview so nothing is hidden.

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Mistake #5: Watching Only Price and Ignoring Position Health

Price alone is not the full picture. You also need to watch:

• Margin ratio
• Unrealized PnL
• Funding countdown
• Maintenance margin level

These indicators show the health of your position, not just directional movement.

Smart traders manage risk first, profits second.

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Mistake #6: Going “All In” on One Trade

Putting everything into one trade feels confident — but it’s actually dangerous.

One unexpected move, one funding spike, one wick… and everything is gone.

Perp trading is a long-term skill game, not a one-shot gamble.

Better approach: Split capital. Size conservatively. Leave room to adjust.

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Mistake #7: Panic Closing Or Refusing to Close

Two emotional extremes:

• Panic exits after a small dip
• Refusing to exit a clearly failing position

Both are symptoms of trading without a plan.

If you define your entry, stop loss, and take profit in advance, your emotions have less power over you.

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Mistake #8: Not Understanding Partial Close

This is one of the most misunderstood concepts in perpetual trading.

Many beginners believe that once a position is opened, they must either hold everything, or fully close everything

But, that is NOT true.

What is partial closure?

Partial close means you can:

• Close part of your position
• Keep the rest open

Why is this useful?

You might want to:

• Lock in partial profits
• Reduce risk when unsure
• De-risk before news events
• Free margin without exiting fully

⭐️ For example:

You open a long position worth $1,000 using USDC as collateral. Later, you open a short position for $400 in the same market.

What really happens?

→ Your net exposure becomes $600 long → You have effectively partially closed the original long

This is not hedging — this is position reduction using the same collateral group.

Understanding this helps you:

• Decrease exposure without closing everything
• Manage risk dynamically
• Adjust strategy without panic

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Mistake #9: Feeling the Need to Trade All the Time

Many beginners open trades simply because:

• The chart is moving
• Others are trading
• They feel they should be doing something

This leads to rushed decisions and unnecessary losses.

Cwallet puts the market in your pocket — but patience is still your greatest advantage.

Sometimes, staying flat is the smartest position.

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Mistake #10: Treating Trading Like Gambling

If your trades are based on:

• Feelings
• FOMO
• Social media tips
• Random entries

Then it’s not trading, it’s guessing. And every trade should have:

• A reason to enter
• A reason to exit
• A reason for size
• A predefined risk

Professional traders think in probabilities, not predictions.

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Summary & Looking Ahead

Most beginner losses don’t come from “bad markets” — they come from avoidable mistakes: too much leverage, no stop loss, no position management, or misunderstanding how partial close and collateral really work.

Cwallet’s perpetual trading system is built to help beginners trade more safely with:

• Clear liquidation previews
• SL / TP support
• Transparent fees
• Real-time PnL monitoring
• Collateral-based position control

The more you learn to manage positions — not just open them — the faster you grow as a trader.

What’s Next? Understanding orders is your first step. Reading charts is your next edge.

In our next guide, “How to Use TradingView Charts to Be a Pro Trader,” you’ll learn how to turn candles, indicators, and price patterns into real trading insight.

Disclaimer: The information in this article is for educational purposes only and does not constitute financial advice, investment advice, trading advice, or any other sort of advice. High-leverage trading involves substantial risk of loss and is not suitable for every investor. Please perform your own due diligence and never invest money that you cannot afford to lose.