Top 10 mistakes while trading (personal experience)

in #crypto5 years ago

Hi, i'm new in this platform, so this is my first test post. I wanted to share in my personal experience the Top 10 mistakes i have learned while trading in the hard way (lossing a lot)

#1 Trading 24/7
Trading is exciting, i'm not gonna lie to you, and this is why we may do a huge mistake that is try to trade all day all week. If anyone here have played poker before, eventhough isn't the same (since you have a lot more tools in trading to reduce the randomeness of each decission that you take) you never play all the hands, including if you are a "Big Stack Bully". The result of trading 24/7 is that you are going to lose track on trends, and lossing the big picture is lethal.

#2 Trading with your core-income
If you haven't started trading yet, you may find this as a cliche, since when you are outside the trading world all seems like a winner-winner result. The main problem is that while more you are risking in trading, your feelings start playing with you. Doesn't matter how much have you studied, you start doubting on everything, and even worse, if you already took a bad decission and you don't take a break everything is going to go downhill.
Making the same paralelism with the poker world, when you are very short in chips, it doesn't matter what hand you have, you start sweating, doubt on every hand, and most likely you are going to go "All-in" in the worse hand.

#3 Mixing middle term trading- with short term trading
This mistake is produced mainly for #1 mistake. If you have spotted a good trading opportunity in middle term, because you have confirmed the formation of a chart figure, don't mess it up trying to do scalping inside the figure, you may end by lossing money in a trading position that could easily have gave you a decent return.

#4 Being greedy
If your analysis tells you that your position may stop earning returns in certain level. Don't wait until that level happens, take profits before, you may lose 10% because you wanted to gain 1%+ in your position.

#5 Marrying a coin-instrument
Trading is about to buy something cheap from one person, and sell it expensive to other person. If you marry a coin for example, you may be ending to be the guy who sells his positions at a lower price.
I know, there are many promising projects, HOLD ON THEM, as i said, trading is as simple as buying something at a price level, and sell it a higher level.

#6 Keep your charts as clean as you can
If you draw every single figure, every single goal in your charts, by the end of the day you won't know what were you doing. You will lose track on trend, you may have 10 Fibonacci's retracement mixed with pivots and MAs and you will not know which level were you supposed to take profits or buying.

#7 Going "All-in"
Risk management is one of the most important parts in trading. however people many times just jump in because they have a clue of how market works. I think personally that the most succesfull traders are those who know exactly what to do with a loss. Many of us, that dive in in the trading world, may have a big loss starting that pushes us to higher the stakes praying to recover the previous loss. That attitude will decapitalize you so quickly that you won't even know where did you lose all your money so fast.

#8 Not having a Plan B
Sometimes we may have many signals to open a positions and whales decides to troll everyone, but you opened it only with your take profit goal, but not your stop-loss level. Always think "What if the market goes the other way", because if you haven't your Plan B and still open a position, you may end lossing a lot of money.

#9 Switching time frames
Switching time frames works to know trends (short term trends, middle term trends, and long term trends). But if you already identified a pattern inside the timeframe you are working with, and decide to switch it to a higher or lower time frame you will get really confused. As i said, higher time frames works to identify trends, (where the market is heading to), once you have done that, and you decide to operate in lower time frames stick with it, or you may stop earning returns for re-re-re-rethinking each position.

descarga (1).jpg

Coin Marketplace

STEEM 0.26
TRX 0.11
JST 0.032
BTC 64799.61
ETH 3102.94
USDT 1.00
SBD 3.83