Common mistakes made by crypto currency traders.

in #btc6 years ago (edited)

Most traders of today have no risk management strategy. Most are interested in buying to see their stacks grow, they invest in a couple of ICOs and treat them like a casino. Few remember that capital preservation is the most important factor contributing to the overall growth of a portfolio. You should be giving your portfolio even more attention in a bear market, even though it’s not fun to do so.

Traders don't know when to quit dollar cost averaging losers in bearish trends, which will continue to dip after buying it.

Traders stay in the game for too long letting greed/not taking profits get in the way,if you’re laddering in trade buys on the way down, why aren’t you laddering in sells on the way up?

Fomo (Fear of missing out) buying off exchanges, watching 140% pumps and jumping in without due diligence, casino style.

Selling based on emotions will usually be at lowest possible price- when you can’t take the pain anymore.

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