Topic: The three biggest mistakes you should avoid (Read 11305 times)
I am so guilty of the first one. I panic so much to sell my token once i discover a small dump and this has made me to loose so much money because i end up selling those token below my buy price. I really wish i can mnage my emotion while trading it will help me a lot and in turn mininize my loss margin
A signal isn't really a perfect way to excel in this market.
Many of them seems to be made up and not really valid due to the market's condition.
They are more of a personal opinion of just another trader.
Many of them seems to be made up and not really valid due to the market's condition.
They are more of a personal opinion of just another trader.
On the days where I decided not to panic buy, I watched coins moon further and further away. On the days I decide not to panic sell, I lost money with severe dips. Cryptocurrency is not for the faint-hearted. You can be an expert but all it takes is one or two whales to make a big money decision and all your near perfect calculations will be flushed down the toilet.
These are some of the mistakes that affect almost all classes of traders. The reason is Emotions often play a huge part in the decisions that we make as traders. Only a few people have been fortunate enough to master the art of controlling their emotions when it comes to trading. This entirely is up to the traders, the faster you can take control, the better it becomes.
This is very right, most times once people see people talking about a coin, they rush to buy even without doing research, they really do not want to miss out, or once a coin is dipping, they sell out of fear without relying on the trust that made them to buy it.
Like you also said, trading without stop loss is very dangerous, if we can cut off these, then it will be a way forward.
Like you also said, trading without stop loss is very dangerous, if we can cut off these, then it will be a way forward.
The first paragraph is fundamental. If a crypto enthusiast learns to control his emotions, then the degree of influence of general panic on him or susceptibility to the opinions of other people (who offer to invest somewhere) will be minimized.
Yes, your summary is so perfect and detailed and I often see the errors you mentioned above especially 1 & 2 a lot of people make, I used to be like "panic buying and selling panic "Because I am not patient enough and confident enough to follow the market and make an accurate choice. So watch the market closely, be more careful in every trade and try to manage your capital well.
that way you have valuable experience that you can later use as a trip to become better the next day. All of this starts from experience, if Panic Cell is a natural thing for beginners, due to lack of knowledge.
as we know that the market is very sensitive to bad news, so before investing or trading must be careful and important you can manage your financial management properly.
Yes, your summary is so perfect and detailed and I often see the errors you mentioned above especially 1 & 2 a lot of people make, I used to be like "panic buying and selling panic "Because I am not patient enough and confident enough to follow the market and make an accurate choice. So watch the market closely, be more careful in every trade and try to manage your capital well.
I think trying to know why there is a bullish run or dump in the market is the first step to take Know the reason behind the rise of a coin, if technology then maybe thats to stick and maybe if just pump and whale then enter carefully..The Most important thing is to take calculated risk
Panic sell is much worse than Panic buy, if you think about the long term.
Who cares if you buy Bitcoin for $10k or $8k whne the possible target is above $500k?
if we talk about bitcoin, then you are right, but in the case of altcoins, a panic but is as bad as a panic sale, because you can stay with the coin which you bought for a long timeWho cares if you buy Bitcoin for $10k or $8k whne the possible target is above $500k?
This is good and certainly the major reasons which has dealt with investors, users or traders in various ways. However, I think capital management should be the first as it goes a long way to determine the success rate of the person in question through determining the amount he trades with etc. Also, most people lacks the knowledge needed for trading, thus allowing FOMO to get hold of them which of course leads them into many issues of which buying at the wrong time is one. From all these as well as those stated by you it points to lack of adequate knowledge of the activities within this space.
1. Thinking that getting rich is easy.
2. Not doing your own research.
3. Trusting random dudes from Youtube/Twitter/Telegram Group.
By the way, cryptocurrency isn't all about exchanges/trading.
Nice summary you got there buddy and I like it. They choose crypto because they want to be rich so easily. Always believe in your due diligence and dont get affected by hype from shillers coming from twitter and youtube. And I absolutely agree, cryptocurrency is very wide and its not all about trading. You can stake or run some masternodes to gain money from it.2. Not doing your own research.
3. Trusting random dudes from Youtube/Twitter/Telegram Group.
By the way, cryptocurrency isn't all about exchanges/trading.
Panic sell is much worse than Panic buy, if you think about the long term.
Who cares if you buy Bitcoin for $10k or $8k whne the possible target is above $500k?
if we talk about bitcoin, then you are right, but in the case of altcoins, a panic but is as bad as a panic sale, because you can stay with the coin which you bought for a long time Who cares if you buy Bitcoin for $10k or $8k whne the possible target is above $500k?
- Panic Buy/Panic sell.
In both cases, you will lose your money - Ignore Capital management.
If you ignore Capital management you will be gambler not trader - Following a signal Without risk assessment or stop loss.
You will be like Jumping into the ocean without a lifeline jacket at, before do anything, look at your risk and reward and what your stop level is.
by this way you can set Your Own risk and know what you do.
Thanks for your list! However, there’s always a small “but” in every rule and we should remember that. Context matters a lot.
Three mistakes discussed by the OP are often made by new traders, who do not understand the cryptocurrency ecosystem well. In addition, the ability and experience of conducting analysis (fundamental and technical) that is lacking make traders or investors easily influenced by rumours and incorrect signals. Cryptocurrency is risky, but it can be avoided and reduced by increasing analytical skills and experience.
- Panic Buy/Panic sell.
In both cases, you will lose your money - Ignore Capital management.
If you ignore Capital management you will be gambler not trader - Following a signal Without risk assessment or stop loss.
You will be like Jumping into the ocean without a lifeline jacket at, before do anything, look at your risk and reward and what your stop level is.
by this way you can set Your Own risk and know what you do.
You can limit yourself to one thing: not to listen to the advice of people you don’t know. Since there is nothing difficult in giving advice. Instead of wasting time looking for diamonds among a bunch of spam, spend it profitably - start by studying crypto material yourself. Form a framework basic knowledge about the crypto, and then it will be easier.
- Panic Buy/Panic sell.
In both cases, you will lose your money - Ignore Capital management.
If you ignore Capital management you will be gambler not trader - Following a signal Without risk assessment or stop loss.
You will be like Jumping into the ocean without a lifeline jacket at, before do anything, look at your risk and reward and what your stop level is.
by this way you can set Your Own risk and know what you do.
not everything you say is true ... that under certain conditions Panic Sell / Panic Buy can give us a big advantage ... because the price of cryptocurency is fluctuating ... so it is very difficult for us to know when the right time to buy and when the right time to sell ... then I think Panic Sell / Panic Buy is also needed in crypto ..
- Panic Buy/Panic sell.
In both cases, you will lose your money - Ignore Capital management.
If you ignore Capital management you will be gambler not trader - Following a signal Without risk assessment or stop loss.
You will be like Jumping into the ocean without a lifeline jacket at, before do anything, look at your risk and reward and what your stop level is.
by this way you can set Your Own risk and know what you do.
not everything you say is true ... that under certain conditions Panic Sell / Panic Buy can give us a big advantage ... because the price of cryptocurency is fluctuating ... so it is very difficult for us to know when the right time to buy and when the right time to sell ... then I think Panic Sell / Panic Buy is also needed in crypto ..
Jump to: