Topic: What to avoid as a beginner in trading Bitcoin? - page 3. (Read 1550 times)

Ignore panic sells.
Because many times new traders sell their tokens while the price dumps. But its a wrong decision Because gradually the price goes up then the traders regret.
So its better to strong hold and avoid panic sell.
It’s  a first step to trading profession.
Be aware of this kind of situation. Stop selling in losses.

The cryptocurrency markets have become very popular among private investors as the potential for high returns is higher than in any other asset class available today. However, cryptocurrencies are also a very risky investment.To help you get started without making many of the most common newbie mistakes, in this article, you will find the ten bitcoin trading mistakes beginners need to avoid.

Here are something you need to avoid as a beginner when trading with bitcoin:
• Fear : If you want to go far in profit making in your business don't trade with fear because fear has led many traders to zero level in profit making. Try to avoid fear when trading with bitcoin because those that trade with fear hard them to achieve anything good from their trade.
• Dump: Always carry out your personal research to know if truly the price will dump more than that before purchasing that particular coins that will help you to achieve something good in your trade.
•  Fake information: there are fake information all over the social media which can lead anyone to trade with wrong people in the market. Try to avoid any fake information for you to go far in your trade .
• Bad project: As a trader who want to become a professional in the future must avoid bad project that look like original project that can reduce any trader at anytime in the market.

For those traders who seems to be unable to control emotions when the market is being tested, they should stop trading because it is simply not for them. Only those who can remain nonchalant even in a bear market and know where to buy and sell will be able to survive for long in this market.

Most people who do, actually have a a faith in bitcoin and they know even if it goes down, it will go back up soon. They will not panic sell or FOMO.

Beginners often might go into the wrong direction that is why I suggest them not to start with hard cash immediately but go with dummy trading and see how they are able to manage their capital.

That is the issue, on the surface it may seem incredibly easy to simply control your emotions but when the market is crashing or going up a lot it is difficult to control you especially if the market is going against your prediction, because that is precisely when your emotions are tested and unfortunately most people fail to control them, take a decision based on them and then they lose their money, quite honestly I do not know of a way to train to control your emotions other than to have a very clear system and then follow it regardless of what you see happening on the market.

Fomo, Hype. Lust. Emotions. That is the key for you to apply. because often if we already understand technically, but in the course of our loss due to this error, you better prepare this in case of a price drop or pump panic. and also this desire is often a problem because sometimes when the decline or increase in a short period of time people tend to trade using their passions

Let me tell you something mate about what to do things for a beginner in bitcoin trading.
It is a good start if any newbies will not start with greediness they won't succeed for sure in the end.
But if they're not and begin with learning the idea and skills here I can guarantee you that you will
succeed and earn well here in cryptocurrency business industry.

Yeah right, as a beginner, we also have to have the ability and know how to trade it. So that we are not easily deceived by parties - parties who are not responsible or are deceptive. If a beginner is equipped with even a little knowledge about trading, he will know how to trade properly and choose the right broker to invest his funds. At least beginners must have and know the following:

1. Have Knowledge About Trading & Can Analyze Market

We must have at least some knowledge about the trades to be made. Find out first information on how to trade properly, what are the advantages and disadvantages and of course what risks we will get. And the most important thing is knowledge in analyzing the market. Analyzing is necessary so that we can see with certainty market movements. As we know the stock market always moves up and down. By analyzing, we can see whether the stock price will go up or down in the next period. If it is analyzed that the price will go down, there we can make a decision whether the trading will continue or we cut losses so that there is no greater loss. There are 2 types of analysis used, namely, fundamental analysis and technical analysis. By using these two analyzes, we can better read market movements. From here we can also learn about what a good company or broker is. With sufficient knowledge, we will know what is genuine, which is deceptive.

2. Own Capital & Starting From Small Nominal

To start trading, of course, we need capital. And we must have good money management in its management. Stock trading has a high risk in its application. If we cannot analyze market movements properly, there is a possibility that we could lose the capital we invested there. Because it's good if we are still beginners in trading, the capital used is not too large. Usually, each broker has a minimum capital that must be deposited. So, at least we can use the capital according to the minimum deposit given by the broker where we trade stocks. With a small capital at the beginning, think of it as our first try in trading. We can see first how the performance, the way of transactions and the risks we will face in the future. If we are able to face the market with good analysis and get consistent profits, we may try to trade with large capital. At least with this small capital, if we experience losses or fail in trading, this will not really affect our financial condition. If we go straight with a large capital and it turns out that our trading failed, it will only bankrupt and lose all the capital we have.

A good advice because indeed one of the reasons why newbies lose money is even before starting to trade. That includes the false confidence that enthusiastic traders have and end up on phishing sites being blinded. Wallet software and how to protect from scammers is something that every cryptocurrency user needs to know and apply in order to be able to protect their coins.

Rankings are good but true potential is not determined by ranking always. Of course Bitcoin is the biggest one out there so everyone should aim to buy some bitcoin if not a lot.

But the wrong move here is often buying altcoins that have been floating in the market just because they dont have enough liquid money to purchase bitcoin in significant amount. In the shoes of a newbie this seems appropriate to buy some altcoins but experienced traders know the curse that befalls any trader buying shitcoins - the endless cycle of despair because no altcoin is going to be next to bitcoin. Short term profits are possible though.

First thing to do is to avoid to register on pishing sites or links you are going to open with your computer because sometimes it generates codes which can hack your personal system in the future. Also avoid several strangers that may contact you through DM, it's obvious a scam. There are lot of things to be avoided as a newbie. It is better to seek advice from those who you trusted crypto users or traders.

You can avoid investing in an unknown token unless there is a bull market like this time. Right now you really don't know which coin will suddenly just jump up instantly and then the price could be $0.10 while the price back in 2018 is $0.00001 there's a very big difference when there is a bull market. As a beginner, it would need a very long read to learn which are the good projects but just by looking at the ranks on coinmarketcap, it can already give you an idea of which one to buy.

If even you don't have backup knowledge then it might work but you have to be very precise and accurate then. I believe most of the traders don't go all-in during each trade so loss can be recovered easily if you just relax and focus on the process more than the performance.

Remember to always learn when you lose and you will be good next time but the problem starts when you are not just losing money but also learning nothing from that mistake. Making the same mistake again and again and expecting different results will never help you out.

I have seen some traders even maintaining a record of their mistakes just to make sure they know what mistakes they are making. A small example can be like never investing into ICOs because they are mostly scam. Its ok to lose money once in ICOs but if you are losing again and again in different projects that means you are not learning anything and obsessed with ICOs and quick money.

Journal learning through books or online learning such as tutorials on YouTube about crypto trading it can help. But it can not completely make
you become an expert in trading. Experience and action are a good move to trade. The most basic  thing in trading  is to buy at a  cheap  price
and sell at a high price, and should always be able to beat emotions when trading.

Being a trader in beginning there are parcels of things to put in thought and there are lot's of things you've got to avoid.Initially you do not need to be ravenous when exchanging, you moreover ought to learn how to control your feelings when exchanging, do not continuously fomo, continuously utilize your halt misfortune but I think that one is discretionary, continuously make beyond any doubt you make your own inquire about some time recently buying any coin, maintain a strategic distance from coins with moo volume and continuously know when to exit the showcase. I think this are something you have got to know as a apprentice but you'll still do more research.

This is not only happening to a newbie, it can also be happening to some of us. Emotion drives us no good but this helps us to commit mistakes and wrong decisions.
That is why, if we should be seriously doing trading and aiming for a positive result, we should have to work on it and eliminate this emotion. Mistakes can't be avoided, as we know that but it could be minimal.

This is true as a newbie never listen by hearsays and avoid such fuds when planning to invest. The most mistakes also by many is being rule by emotions. As a beginner when trading Bitcoin to always dyor before investing and journaling is a big help in trading. Plan when to buy and when to sell and always take on profit when happy.

Just don't get swept up by the hype and don't be swayed by FUD, that's the two of the most important things to avoid when trading Bitcoin or any crypto and most importantly, aside from those two, don't sell based on your emotion. Once you've entered a position, you should exit that position based on whichever strategy you have in place. If you hold a crypto (ex. BTC, ETH or LTC) and these crypto falls in value, you must evaluate the situation first before selling your holdings and yes, journaling really helps.

I used to believe the same until the recent tweets from Elon Musk shook the crypto market and pumped the dogecoin quite literally within days and weeks. I used to read these tweets in my leisure times and never took them seriously because that is the kind of image Mcafee created in the market because he was taking money and promoting shit coins/token.

I think with time now more and more influencers are coming into bitcoins like recently mrbeast, the famous youtuber, got into bitcoins and bought a big amount if I read the news right. With time that image McAfee created will change but yeah don't trust just anyone promoting coins and tokens out there, I agree.

1. avoid pump and dump group.
2. any tweets or statement from crypto influencers is not for financial advice but edutainment purpose.
3. set a target, and don't be greed.
4. don't use all of your money, and always do budgeting.
5. trading journal might be helpful for some people ---> https://www.finextra.com/blogposting/12877/everything-you-need-to-know-about-getting-a-trading-journal

In general, we don't have to try trading if we don't have backup knowledge about this. Not just only we are risking but we are pushing our self to lose instantly.

And to avoid such a thing, we don't need to rush, it should be in a process and that it takes long as expected. Remember, there is no shortcut in trading and that we need to be patient learning, taking a risk every day, listen to others, but most important is, we have to think many times before making a decision.