Topic: 5 mistakes every crypto trader should avoid - page 7. (Read 1069 times)
Very nice thread a big help and the good thing even i know this already i still learn from your post. I will state some other factors. The emotional side of a trader more than a fomo. Emotion is our big enemy in trading we actually don't have to set aside it but we need to make it balance in a way that the time when we are about to enter a trade. This is always my problem in the past that i can't control the tendency even i make profit after that i will make a bad decision to enter a trade again where your other point is there the over trading.
Thank you for sharing information about mistakes every crypto trader should avoid. I will also add a little, that is using trading
capital from loan. This will be very dangerous if we lose then we will have trouble in paying the debt. The next is greed, this is
also a thing that must be avoided because it can make us become losers. And the last one following trading signals, this can
make us look stupid. Because by following trading signals our knowledge will not increase and we will not get anything.
capital from loan. This will be very dangerous if we lose then we will have trouble in paying the debt. The next is greed, this is
also a thing that must be avoided because it can make us become losers. And the last one following trading signals, this can
make us look stupid. Because by following trading signals our knowledge will not increase and we will not get anything.
Such problems have often been discussed, everyone has a different opinion, and every trader has a different trading style, there are many mistakes in trading, especially beginners, they force themselves to enter the market while they do not understand the state of the market, they are very enthusiastic to get profits while not learning the right analysis, and many more mistakes made, especially by beginners.
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 fear of missing out (FOMO) is part of the reason that traders lose because most times, it is wrong timing for you. But you can't learn from it if you have not been a longtime trader who has built emotions on trade over time. You must be good at controlling your emotion on trade before you can avoid FOMO. Nice thread from OP.
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.
The one thing that most beginner traders fail to understand is this. Sadly, saying it and truly understanding it are two different things since I also came from that time after all. One professor of mine in the past taught me this, since well, he was also pretty impatient.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.
To practice overcoming your impatience, try doing a hobby of sorts that require meticulous work. Like the one that with just one touch, everything goes haywire kind of thing. His hobby was building Gundam models and honestly, it was quite inspiring since I never taught of hobbies like that as something that could help me as a person. Once I taught about what he said, it dawned on me that it really is true. Patience stems from you being able to endure, being able to adapt, and being able to wait for the result caused by the end, you would see something wonderful that was made by your own hands. Trading could be said the same but waiting could be said to take the majority of it, but there's also the studying part and analyzing part also so its kind of similar.
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/
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/
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