We as humans are bound to make mistakes. We make mistakes either out of fear or greed. Therefore, to avoid making mistakes in trading you need to memorize the chart patterns until you make mistakes repeatedly. These are tactics that can help you in the long run.
You’ve got to comprehend the schemes right. If you expect any possibility of victory, you need to learn all the rules first.
Not only do you have to understand what to do, but you also MUST realize how to navigate clearly and easily. That’s what this article is about. We are sharing 5 mistakes that every trader needs to resist like the plague.
Purchasing Cryptocurrency Without Plan
Most traders enter into the trading world and expect their crypto prices to increase as soon as possible. However, that happens rarely. But new trader’s emotions overpower them and they convince themselves that the price will increase.
Unwilling to sell and put up with the loss, they keep holding the currency. And the rate keeps declining and now these novice traders bag holding. The mistake is due to unplanned purchasing of cryptos. So, when entering the world of trading, make sure to ask yourself these questions:
- What am I beholding on the chart that is compelling me to go long or short?
- What are my rate targets?
- How much money am I willing to put at stake?
Not Cutting Losses Quickly
It’s human nature that we don’t accept our mistakes quickly. But in trading, if you have made a mistake, accept it.
You can blow up your account by making this mistake again so admit that you’re wrong and get out, fast. A trade isn’t a battle for something you believe in. Get out of your mistakes and learn from them. This way you’ll go better at trading.
Not Keeping A Trading Journal
When you think about trading, “journaling” isn’t anything that usually arrives in anyone’s mind.
You notice when you join any trading platform, let’s suppose it’s News Spy which is a cryptocurrency trading platform, and exit with a profit, then roll on to the next trade. But many people wonder, is the news spy legit?
Nope. You have to have a journal of ALL of your trades: the favorable, the worse, and the ugly.
Take screenshots of the chart and the layout that you got into each trade. Jot down your opinions on why you preferred the chart and joined the trade. Write everything and learn from your wins and losses.
Trading Too Large Position Sizes
When you’re exchanging, always keep position size in the intellect. Don’t take chances too much on your entire trading strategies on any one trade. When you’re just beginning you may only have a small amount, to start with. You may adore a chart and believe the rate will heighten, but what you believe or think doesn’t matter to the market.
Use decent judgment and reasonable risk management strategies. Don’t drop all your wealth into one trade. Assess your trading policies and regulations with minor position sizes. Make 50–100 exchanges to assess your win rate. Once you realize that, you can deliberately boost your position size and improve your technique along the way.
Lack of Preparation
You won’t learn exchanging cryptocurrency at a school or anywhere else. If you’re enticed to trading, you probably didn’t like educators and supervisors confiding you on what to do.
You’re a distinct personality. We get that. It’s favorable if you can suppress that aspect of your personality. Anyone is in this position. But if you expect to prosper at trading, you must evolve the stringent, hardest-ass boss you’ll ever possess in your life: you.
Take different gauges and apply them to be well-prepared.
If you are just starting out trading, you need to seek help from experienced traders or learn from the internet. You need to avoid these mistakes while trading for the first time to achieve success and gain more profits.