Will We Ever Overcome These Crypto Trading Mistakes

You and I know that the entry into the crypto market is quite low and as a result, you can quickly become a trader when you have a small capital, a computer or smartphone with an internet connection. Unfortunately, it is easier than ever to go broke while learning your lessons the hard way.

Tracking the mob

I have seen some friends that ended up FOMOing into a hot coin or paying too much since they blindly follow the herd. They failed to understand that it is when trades get too crowded that the experienced traders exit. And after the smart money has moved out of a trade, novice traders continue to stay in it for long. Also, when necessary, the confidence to be contrarian can be lacking in new traders.

Making use of influences or leverages

This circumstance is a no-go area! When you are looking for the actual definition of a double-edged sword, then, think of leverage. Why? Because while exacerbating losses on losing trades, profitable trades can also get boost returns through leverage. For those that have been profitable consistently for years, I’m talking about the gurus, the advanced traders; those are the ones that have the exclusive of leverage.

They also risk more than they can afford to lose

You must be in the right place at the right time if you want to assume the portrayed idea of earning life-changing money in crypto. Therefore, they forget that it is typical of lottery tickets, and as such, they risk everything by going all-in on crypto.

Wait! Do they have a trading journal?!

There’s a plan for successful traders. And holding yourself accountable for your actions is one aspect of trading with a plan. And when you keep the record of a trade, you are keeping to the right path. You will know about avoiding repeating trading mistakes as it is the best way of learning. Thus, you can refer back to it when you keep a journal for recording the trade results, emotional state, as well as your thought process.

And then, there’s a case of being undercapitalized. Newbie traders are led blindly with the belief that they can make boatloads of cash without leaving the comfort of their couch. And except there’s a significant capital for them to trade with, this belief is a false reality.

There are a whole lot of things to be cautious about when you are trading in crypto. This article is the first installment of some of the mistakes you must learn to avoid. I will make sure I cover some examples of the things you need to avoid in my next article. So, watch out for it. Meanwhile, kindly let me know if there some other mistakes you know that people need to avoid in the comment below.

Till tomorrow, take care.