Topic: 5 mistakes every crypto trader should avoid - page 6. (Read 1069 times)
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Many traders will feel fear of missing, especially if the price starts to increase. They confuse how to enter the market while they don't have a target buy and sell, but they really want to make a profit. If that happens, then stop loss/take profit will not be reached, and that traders will spend too much money in one coin while that is not necessary to do that. They make another mistake by doing that over and over. Once FOMO happens, then everything will not work properly, and the traders will once again lose the money.
Putting too much money in too soon
Most of us start with pretty humble beginnings as traders, and that’s totally fine. However, trading above your means is one of the top rookie errors that a new trader can make. Emptying out your savings, or even taking a loan (Yes, people do this), is just a bad idea. Nobody is immune to making mistakes, and even professional crypto traders can be subject to losses.
Even if you think you’ve done enough research, making too risky moves that could cost you a lot in the early days, is just not a good idea. Rather trade with smaller amounts, build your way up slowly and minimize the consequences.
This is what I have done the first time around doing trading.
$100 as a capital and never went overboard once I lose all of those.
The good thing is I got an idea of what should be done. Besides, that money is what I have earned from efforts of bounty hunting.
Therefore, I didn't regret that much anymore although I did when I lose it.
Somehow I learned so many things and also because of that I did research what other type of trading strategies I could use to heighten my level into making profits.
Its sad but its the reality and always invest on the amount that you can afford to lose just like the common line which can be applied on gambling too since we know that
any investment do had some risk of losing that's why its better to go minimal which wont hurt you out too much since you are already anticipating on what would happen.
Putting too much money in too soon
Most of us start with pretty humble beginnings as traders, and that’s totally fine. However, trading above your means is one of the top rookie errors that a new trader can make. Emptying out your savings, or even taking a loan (Yes, people do this), is just a bad idea. Nobody is immune to making mistakes, and even professional crypto traders can be subject to losses.
Even if you think you’ve done enough research, making too risky moves that could cost you a lot in the early days, is just not a good idea. Rather trade with smaller amounts, build your way up slowly and minimize the consequences.
This is what I have done the first time around doing trading.
$100 as a capital and never went overboard once I lose all of those.
The good thing is I got an idea of what should be done. Besides, that money is what I have earned from efforts of bounty hunting.
Therefore, I didn't regret that much anymore although I did when I lose it.
Somehow I learned so many things and also because of that I did research what other type of trading strategies I could use to heighten my level into making profits.
The points you have mentioned are quite good but i would like to add some more to it like never trade in coins which you dont know or in other words say don't trade without knowledge and skill in this highly volatile market. As said never invest more than you afford to loose and try to be your own avoid copying other style in trading.And above all control your emotions if you want to earn profits in cryptocurrencies.
It's a common scenario that when a person enters in this cryptocurrency trading platform then he or she wants to trade with a huge amount, this trend is too much harmful to a newcomer, this should be avoided for the shake of a better trading opportunity, I think one special project is enough to bring back a huge profit if thing could be operated properly, not only that but also many project's investments hampers the growth rate of any trading, so I suggest always that not more than 3 projects should be run at a time, huge money involvement will bring huge mental pressure, that's why slow and steady run will bring a good run for trading purpose.
About over trading, i think it is just kind of strategy from people. Although not much people who do it, maybe out there people go full in trading. And what they do is look in market maybe stop only to take a rest. And it is not bad thing because market condition nobody know. And we talk about trading not investment, sometime suddenly market get pumped or dumped and we must ready to anything that could happen.
FOMO
We think that the top mistake, out of the 5 mistakes that every crypto trader should avoid, is giving into FOMO (the fear of missing out). New crypto traders are particularly susceptible to this, however even the most experienced trader can fall prey to it. Whether it’s in situations where you sell an asset too early because you’re afraid of making a loss, or even buying into sketchy projects just because somebody you know deemed it as the next great project, FOMO is never good.
This is one of the hardest mistake to avoid. Even traders with some experience and knowledge sometimes cannot avoid them.We think that the top mistake, out of the 5 mistakes that every crypto trader should avoid, is giving into FOMO (the fear of missing out). New crypto traders are particularly susceptible to this, however even the most experienced trader can fall prey to it. Whether it’s in situations where you sell an asset too early because you’re afraid of making a loss, or even buying into sketchy projects just because somebody you know deemed it as the next great project, FOMO is never good.
Not to mention for newbie traders. It's even worse than it looks. Especially if they've been following some kind of trading signals.
They just blindy followed the signal without knowing that the price already too high. And panic selling when someone spreading FUDs.
FOMO and overtrading are the most common mistakes for new traders. I know that they have a market understanding and trading ideas before they take the risk but what makes them difficult is how to control their emotion bringing them into FOMO. We can't simply escape from that emotional stress cause they are still the adoption process, it will take days, weeks or even months to adjust.
But thinking of why we should avoid diversification? It is just an option for traders, it sometimes gives a positive result and it also saves some of our funds. You'll probably be losing if using this one but it is all about to sacrifice for the sake that we never lose everything we had, but a way to start over again.
Emotions and experienced will able you overtake FOMOS and over-trading. With good skills and having working system to plan ahead of time.But thinking of why we should avoid diversification? It is just an option for traders, it sometimes gives a positive result and it also saves some of our funds. You'll probably be losing if using this one but it is all about to sacrifice for the sake that we never lose everything we had, but a way to start over again.
Your experience will guide you up to avoid making big mistakes and over-calculate the situations, many traders failed to anticipate because emotions
take over them, but if you have the right attitude and you already learned from your past trades you can control taking any quick actions without any
good assessments.
Of all the 5 things you mentioned, FOMO is the mistake that even seasoned trader cant avoid. Our worst enemy in trading is emotion. That is why there are those who just use bots to trade so that no matter what news come out the press even if it is negative or positive, the bot will not react and just follow the settings.
BOT still has its own risks if you use it because if there is a security problem, it is possible to lose money when investing. For me you should only trade normally or invest in long-term to earn good profits because this market still has a lot of opportunities for everyone. Emotions can affect the psychology of investors but if you can control that, you will be easier to succeed when trading.I personally do not trust any FOMO or FUD news because if I read it I will definitely make the wrong decisions and affect my profits. The best solution is still to analyze this market and make your own decisions.
Before, I was very excited to trade. Just when i thought I gain the knowledge and was prepared for trading I have realized these thing that was my mistakes when I am kinda new before.
-Overconfidence
-Don't know the right entry and exit point
-Not relying on my own TA
-Not setting stop loss
Our mistakes tend to become our lesson to improve more in trading. Also, there is always FOMO but I have managed to control my emotions now unlike before, panicking and regrets will not help to have a healthy trades.
-Overconfidence
-Don't know the right entry and exit point
-Not relying on my own TA
-Not setting stop loss
Our mistakes tend to become our lesson to improve more in trading. Also, there is always FOMO but I have managed to control my emotions now unlike before, panicking and regrets will not help to have a healthy trades.
I like the item 2 - don't know the right entry and exit point. This is actually hard when you are trading cryptocurrencies. You can't really tell the exact points but you will have idea if you are closely following the coin. This will also minimize your losses in case the coin is heading to its dying stage. This is I think one of the difficult situations that I always encounter during trading.
Of all the 5 things you mentioned, FOMO is the mistake that even seasoned trader cant avoid. Our worst enemy in trading is emotion. That is why there are those who just use bots to trade so that no matter what news come out the press even if it is negative or positive, the bot will not react and just follow the settings.
FOMO and overtrading are the most common mistakes for new traders. I know that they have a market understanding and trading ideas before they take the risk but what makes them difficult is how to control their emotion bringing them into FOMO. We can't simply escape from that emotional stress cause they are still the adoption process, it will take days, weeks or even months to adjust.
But thinking of why we should avoid diversification? It is just an option for traders, it sometimes gives a positive result and it also saves some of our funds. You'll probably be losing if using this one but it is all about to sacrifice for the sake that we never lose everything we had, but a way to start over again.
But thinking of why we should avoid diversification? It is just an option for traders, it sometimes gives a positive result and it also saves some of our funds. You'll probably be losing if using this one but it is all about to sacrifice for the sake that we never lose everything we had, but a way to start over again.
Diversification's not entirely needed if you're only talking about it in regards to doing so in cryptocurrency as well. Many people have done extremely well investing only in Bitcoin and holding and/or trading only Bitcoin, and a lot of alts end up going nowhere as well, even sometimes despite having a good project.
Doing your own TA is also an extremely good idea, especially initially. You're never really going to learn if you only use other peoples' work or copy other peoples' trades, and you have to start somewhere. It's tempting to just copy other peoples' trades like you can do on a site like eToro, but you really gain nothing from that.
A lot of people also rely too much on one or two indicators or end up trading with no plan to minimize risks. Risk management's extremely important because you can have a very high winning trade percentage rate but still lose a significant amount of money on just one or two failed trades. You should also take risk into account when making individual trades as well, because a lot of traders, even more experienced ones, take a significant amount of risk for just a tiny reward.
Doing your own TA is also an extremely good idea, especially initially. You're never really going to learn if you only use other peoples' work or copy other peoples' trades, and you have to start somewhere. It's tempting to just copy other peoples' trades like you can do on a site like eToro, but you really gain nothing from that.
A lot of people also rely too much on one or two indicators or end up trading with no plan to minimize risks. Risk management's extremely important because you can have a very high winning trade percentage rate but still lose a significant amount of money on just one or two failed trades. You should also take risk into account when making individual trades as well, because a lot of traders, even more experienced ones, take a significant amount of risk for just a tiny reward.
Before, I was very excited to trade. Just when i thought I gain the knowledge and was prepared for trading I have realized these thing that was my mistakes when I am kinda new before.
-Overconfidence
-Don't know the right entry and exit point
-Not relying on my own TA
-Not setting stop loss
Our mistakes tend to become our lesson to improve more in trading. Also, there is always FOMO but I have managed to control my emotions now unlike before, panicking and regrets will not help to have a healthy trades.
-Overconfidence
-Don't know the right entry and exit point
-Not relying on my own TA
-Not setting stop loss
Our mistakes tend to become our lesson to improve more in trading. Also, there is always FOMO but I have managed to control my emotions now unlike before, panicking and regrets will not help to have a healthy trades.
All of OP stated was right and a good trader we should simply avoid that and also avoid possible losses.
Probably OP you must add this, the greed. Through this, you have a chance to stay away on overtrading and also chasing you lose.
Nevertheless, overall was helpful thought and as a trader, they should know regarding this matter.
Probably OP you must add this, the greed. Through this, you have a chance to stay away on overtrading and also chasing you lose.
Nevertheless, overall was helpful thought and as a trader, they should know regarding this matter.
About diversification:
Diversifying your crypto-investments in form of other cryptocurrency, is no diversification at all.
This market is strongly entangled with bitcoin alone, if the king goes down, so must the others and we saw that multiple times.
"Investor" should be a way of thinking for all possible spectrums. Have some of this and some of that, just in case.
If anyone bother about my opinion, I say focus on bitcoin and it's counterpart that is gold, litecoin and silver and so on.
This is real diversification and only this way you are somewhat securing semi-stable future for yourself.
Diversifying your crypto-investments in form of other cryptocurrency, is no diversification at all.
This market is strongly entangled with bitcoin alone, if the king goes down, so must the others and we saw that multiple times.
"Investor" should be a way of thinking for all possible spectrums. Have some of this and some of that, just in case.
If anyone bother about my opinion, I say focus on bitcoin and it's counterpart that is gold, litecoin and silver and so on.
This is real diversification and only this way you are somewhat securing semi-stable future for yourself.
This. All the cryptocurrencies are highly correlelated. If you want to diversify your investments, buy property or hold bonds - those things are not correlated with cryptocurrency/bitcoin.
To buy a property and bold why the traders need to be here dude.
If wanna stay stronger in trading field you must need to learn the strategies from the experienced traders and go the investment step by step to increase the profit and learn all the basics.
About diversification:
Diversifying your crypto-investments in form of other cryptocurrency, is no diversification at all.
This market is strongly entangled with bitcoin alone, if the king goes down, so must the others and we saw that multiple times.
"Investor" should be a way of thinking for all possible spectrums. Have some of this and some of that, just in case.
If anyone bother about my opinion, I say focus on bitcoin and it's counterpart that is gold, litecoin and silver and so on.
This is real diversification and only this way you are somewhat securing semi-stable future for yourself.
Diversifying your crypto-investments in form of other cryptocurrency, is no diversification at all.
This market is strongly entangled with bitcoin alone, if the king goes down, so must the others and we saw that multiple times.
"Investor" should be a way of thinking for all possible spectrums. Have some of this and some of that, just in case.
If anyone bother about my opinion, I say focus on bitcoin and it's counterpart that is gold, litecoin and silver and so on.
This is real diversification and only this way you are somewhat securing semi-stable future for yourself.
This. All the cryptocurrencies are highly correlelated. If you want to diversify your investments, buy property or hold bonds - those things are not correlated with cryptocurrency/bitcoin.
Starting to trade crypto can be a massive learning curve. Whether you’re an experienced trader or a newbie, crypto trading can seem hugely complicated and it’s super easy to mess up in the beginning. Luckily, there’s a lot of information out there that can help you become the crypto trader of your dreams. We’ve compiled a list of the 5 mistakes every crypto trader should avoid, so keep reading to learn the dos and don’ts of crypto trading in 2019.
Stop loss/take profit placement
If we’ve said this once, we’ve said this a thousand times – never ever enter a position before placing a stop loss and take profit order. Find an exchange that offers leverage trading, and learn how to position your orders.
Arguably, the most crucial thing is to learn to spot liquidity pools, so you can identify the resistance and support levels. Only then should you place your orders, just above and below those levels, so you can be sure not to miss out. This is vital to crypto trading to ensure that you don’t get rekt. Seriously, set your stop loss and profit orders.
Always avoid overtrading
While it might be super tempting to manually close all of your positions when you see that you’ve made a profit or a loss, the best strategy is always going to be to keep your initial position and place your trust in your stop loss/take profit orders. Don’t check your positions all the time. Trust your strategies to do the work.
Diversification
Sure diversification is a good thing, but everything in moderation right? The cryptocurrency market is pretty volatile, so be careful spreading yourself too thin over altcoins with small market caps, instead of focusing on a few larger coins. Always do extensive research before trading in any altcoins (if you’re really not sure, top traders recommend sticking to small amounts of Bitcoin, Ethereum, Ripple, and/or Litecoin to start).
https://www.youtube.com/watch?v=NtI0YDBPU5M
Putting too much money in too soon
Most of us start with pretty humble beginnings as traders, and that’s totally fine. However, trading above your means is one of the top rookie errors that a new trader can make. Emptying out your savings, or even taking a loan (Yes, people do this), is just a bad idea. Nobody is immune to making mistakes, and even professional crypto traders can be subject to losses.
Even if you think you’ve done enough research, making too risky moves that could cost you a lot in the early days, is just not a good idea. Rather trade with smaller amounts, build your way up slowly and minimize the consequences.
FOMO
We think that the top mistake, out of the 5 mistakes that every crypto trader should avoid, is giving into FOMO (the fear of missing out). New crypto traders are particularly susceptible to this, however even the most experienced trader can fall prey to it. Whether it’s in situations where you sell an asset too early because you’re afraid of making a loss, or even buying into sketchy projects just because somebody you know deemed it as the next great project, FOMO is never good.
https://www.youtube.com/watch?v=dasfUZXrMqQ
Luckily, you can resist it. Have patience, follow your strategy, and only trade with coins that you know are reliable, with money that you have.
The key to trading crypto
Now that we’ve had a chance to take a look at the 5 mistakes every crypto trader should avoid, we have to ask ourselves: What exactly is the key to trading crypto?
That’s pretty simple: Patience. Don’t be afraid that you’re going to miss out on the next big thing. The crypto market is constantly growing and changing and there’s more than enough investment and trade to go around for everyone. Don’t invest in altcoins that you aren’t sure about, don’t give into FOMO, and don’t trade above your means.
If you want a fantastic resource for crypto trading, check out eToro. It’s a social trading platform that allows for easy and safe crypto trading.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.
https://www.etoro.com/blog/market-insights/5-mistakes-every-crypto-trader-should-avoid/
I think a very important concept pretty dear to my heart which you really forgot is Risk Management. I consider 80% of success in Trading comes with Risk Management. If you can limit the amount of risk in every trade to maximize your return. You just don't need any guidance in selecting your trades. Because if you are trading even with a 60% win strategy a good risk management technique can increase the returns upto 80% because it teaches you how to earn greater from the trades you win and lose less from trades you lose by setting a favourable Risk to Reward Ratio. Let's consider an example to understand this.Stop loss/take profit placement
If we’ve said this once, we’ve said this a thousand times – never ever enter a position before placing a stop loss and take profit order. Find an exchange that offers leverage trading, and learn how to position your orders.
Arguably, the most crucial thing is to learn to spot liquidity pools, so you can identify the resistance and support levels. Only then should you place your orders, just above and below those levels, so you can be sure not to miss out. This is vital to crypto trading to ensure that you don’t get rekt. Seriously, set your stop loss and profit orders.
Always avoid overtrading
While it might be super tempting to manually close all of your positions when you see that you’ve made a profit or a loss, the best strategy is always going to be to keep your initial position and place your trust in your stop loss/take profit orders. Don’t check your positions all the time. Trust your strategies to do the work.
Diversification
Sure diversification is a good thing, but everything in moderation right? The cryptocurrency market is pretty volatile, so be careful spreading yourself too thin over altcoins with small market caps, instead of focusing on a few larger coins. Always do extensive research before trading in any altcoins (if you’re really not sure, top traders recommend sticking to small amounts of Bitcoin, Ethereum, Ripple, and/or Litecoin to start).
https://www.youtube.com/watch?v=NtI0YDBPU5M
Putting too much money in too soon
Most of us start with pretty humble beginnings as traders, and that’s totally fine. However, trading above your means is one of the top rookie errors that a new trader can make. Emptying out your savings, or even taking a loan (Yes, people do this), is just a bad idea. Nobody is immune to making mistakes, and even professional crypto traders can be subject to losses.
Even if you think you’ve done enough research, making too risky moves that could cost you a lot in the early days, is just not a good idea. Rather trade with smaller amounts, build your way up slowly and minimize the consequences.
FOMO
We think that the top mistake, out of the 5 mistakes that every crypto trader should avoid, is giving into FOMO (the fear of missing out). New crypto traders are particularly susceptible to this, however even the most experienced trader can fall prey to it. Whether it’s in situations where you sell an asset too early because you’re afraid of making a loss, or even buying into sketchy projects just because somebody you know deemed it as the next great project, FOMO is never good.
https://www.youtube.com/watch?v=dasfUZXrMqQ
Luckily, you can resist it. Have patience, follow your strategy, and only trade with coins that you know are reliable, with money that you have.
The key to trading crypto
Now that we’ve had a chance to take a look at the 5 mistakes every crypto trader should avoid, we have to ask ourselves: What exactly is the key to trading crypto?
That’s pretty simple: Patience. Don’t be afraid that you’re going to miss out on the next big thing. The crypto market is constantly growing and changing and there’s more than enough investment and trade to go around for everyone. Don’t invest in altcoins that you aren’t sure about, don’t give into FOMO, and don’t trade above your means.
If you want a fantastic resource for crypto trading, check out eToro. It’s a social trading platform that allows for easy and safe crypto trading.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.
https://www.etoro.com/blog/market-insights/5-mistakes-every-crypto-trader-should-avoid/
Case 1: 60% win ratio with 1:2 Risk Reward
You take a Risk to Reward Ration of 1:2 which means you Buy at 9000 and set your target at 9200 but keep your Stop Loss at 8900. Which means maximum loss is $100 but max profit is $200. Now if you keep this ratio over a period of say 100 Trades.
Now Assuming you get profitable in 60 trades which means you earn 60x200 which is $12000 and you lose 40x100 which means $4000. Your net gain still is $8000.
Case 2: 80% win ratio with 1:2 Risk Reward
You take a Risk to Reward Ration of 1:2 which means you Buy at 9000 and set your target at 9100 but keep your Stop Loss at 8800. Which means maximum loss is $200 but max profit is $100. Now if you keep this ratio over a period of say 100 Trades.
Now Assuming you get profitable in 80 trades which means you earn 80x100 which is $8000 and you lose 20x200 which means $4000. Your net gain still is just $4000 with a better strategy.
This is why people say that it's better to have a better Risk Management strategy.
That’s pretty simple: Patience. Don’t be afraid that you’re going to miss out on the next big thing. The crypto market is constantly growing and changing and there’s more than enough investment and trade to go around for everyone. Don’t invest in altcoins that you aren’t sure about, don’t give into FOMO, and don’t trade above your means.
Patience is the very key attribute a trader should have, the volatility of the coins, the market price, the unpredictable movements of chart, issues m, bullish and bearish trends are surely going to test a trader's patience. Although having knowledge is also essential, being someone who has knowledge alone but doesn't have enough patience could still result to losing and unsuccessful in trading. The need to make a very solid decision once they entered trading isn't possible without long patience.
All of these are correct and a good guide when I was active in trading I lost because of FOMO, I lose a lot of money because of this and one of the reason why I prefer to just pick the right coin coin or those coins that are more stable, then hodl it for future profit, there's so much time involve in trading full time, but if you are the one who can allocate time,money and effort trading is a good stuff to learn.
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