Bitcoin Forum

Starting to trade crypto can be a massive learning curve. Whether you’re an experienced trader or a newbie, crypto trading can seem hugely complicated and it’s super easy to mess up in the beginning. Luckily, there’s a lot of information out there that can help you become the crypto trader of your dreams. We’ve compiled a list of the 5 mistakes every crypto trader should avoid, so keep reading to learn the dos and don’ts of crypto trading in 2019.

Stop loss/take profit placement

If we’ve said this once, we’ve said this a thousand times – never ever enter a position before placing a stop loss and take profit order. Find an exchange that offers leverage trading, and learn how to position your orders.

Arguably, the most crucial thing is to learn to spot liquidity pools, so you can identify the resistance and support levels. Only then should you place your orders, just above and below those levels, so you can be sure not to miss out. This is vital to crypto trading to ensure that you don’t get rekt. Seriously, set your stop loss and profit orders.

Always avoid overtrading

While it might be super tempting to manually close all of your positions when you see that you’ve made a profit or a loss, the best strategy is always going to be to keep your initial position and place your trust in your stop loss/take profit orders. Don’t check your positions all the time. Trust your strategies to do the work.

Diversification

Sure diversification is a good thing, but everything in moderation right? The cryptocurrency market is pretty volatile, so be careful spreading yourself too thin over altcoins with small market caps, instead of focusing on a few larger coins. Always do extensive research before trading in any altcoins (if you’re really not sure, top traders recommend sticking to small amounts of Bitcoin, Ethereum, Ripple, and/or Litecoin to start).

https://www.youtube.com/watch?v=NtI0YDBPU5M

Putting too much money in too soon

Most of us start with pretty humble beginnings as traders, and that’s totally fine. However, trading above your means is one of the top rookie errors that a new trader can make. Emptying out your savings, or even taking a loan (Yes, people do this), is just a bad idea. Nobody is immune to making mistakes, and even professional crypto traders can be subject to losses.

Even if you think you’ve done enough research, making too risky moves that could cost you a lot in the early days, is just not a good idea. Rather trade with smaller amounts, build your way up slowly and minimize the consequences.

FOMO

We think that the top mistake, out of the 5 mistakes that every crypto trader should avoid, is giving into FOMO (the fear of missing out). New crypto traders are particularly susceptible to this, however even the most experienced trader can fall prey to it. Whether it’s in situations where you sell an asset too early because you’re afraid of making a loss, or even buying into sketchy projects just because somebody you know deemed it as the next great project, FOMO is never good.

https://www.youtube.com/watch?v=dasfUZXrMqQ

Luckily, you can resist it. Have patience, follow your strategy, and only trade with coins that you know are reliable, with money that you have.

The key to trading crypto

Now that we’ve had a chance to take a look at the 5 mistakes every crypto trader should avoid, we have to ask ourselves: What exactly is the key to trading crypto?

That’s pretty simple: Patience. Don’t be afraid that you’re going to miss out on the next big thing. The crypto market is constantly growing and changing and there’s more than enough investment and trade to go around for everyone. Don’t invest in altcoins that you aren’t sure about, don’t give into FOMO, and don’t trade above your means.

If you want a fantastic resource for crypto trading, check out eToro. It’s a social trading platform that allows for easy and safe crypto trading.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.

https://www.etoro.com/blog/market-insights/5-mistakes-every-crypto-trader-should-avoid/

The one thing that most beginner traders fail to understand is this. Sadly, saying it and truly understanding it are two different things since I also came from that time after all. One professor of mine in the past taught me this, since well, he was also pretty impatient.

To practice overcoming your impatience, try doing a hobby of sorts that require meticulous work. Like the one that with just one touch, everything goes haywire kind of thing. His hobby was building Gundam models and honestly, it was quite inspiring since I never taught of hobbies like that as something that could help me as a person. Once I taught about what he said, it dawned on me that it really is true. Patience stems from you being able to endure, being able to adapt, and being able to wait for the result caused by the end, you would see something wonderful that was made by your own hands. Trading could be said the same but waiting could be said to take the majority of it, but there's also the studying part and analyzing part also so its kind of similar.

This fear of missing out (FOMO) is part of the reason that traders lose because most times, it is wrong timing for you. But you can't learn from it if you have not been a longtime trader who has built emotions on trade over time. You must be good at controlling your emotion on trade before you can avoid FOMO. Nice thread from OP.

About diversification:
Diversifying your crypto-investments in form of other cryptocurrency, is no diversification at all.
This market is strongly entangled with bitcoin alone, if the king goes down, so must the others and we saw that multiple times.
"Investor" should be a way of thinking for all possible spectrums. Have some of this and some of that, just in case.
If anyone bother about my opinion, I say focus on bitcoin and it's counterpart that is gold, litecoin and silver and so on.
This is real diversification and only this way you are somewhat securing semi-stable future for yourself.

Such problems have often been discussed, everyone has a different opinion, and every trader has a different trading style, there are many mistakes in trading, especially beginners, they force themselves to enter the market while they do not understand the state of the market, they are very enthusiastic to get profits while not learning the right analysis, and many more mistakes made, especially by beginners.

Thank you for sharing information about mistakes every crypto trader should avoid. I will also add a little, that is using trading
capital from loan. This will be very dangerous if we lose then we will have trouble in paying the debt. The next is greed, this is
also a thing that must be avoided because it can make us become losers. And the last one following trading signals, this can
make us look stupid. Because by following trading signals our knowledge will not increase and we will not get anything.

Very nice thread a big help and the good thing even i know this already i still learn from your post. I will state some other factors. The emotional side of a trader more than a fomo. Emotion is our big enemy in trading we actually don't have to set aside it but we need to make it balance in a way that the time when we are about to enter a trade. This is always my problem in the past that i can't control the tendency even i make profit after that i will make a bad decision to enter a trade again where your other point is there the over trading.

All of these are correct and a good guide when I was active in trading I lost because of FOMO, I lose a lot of money because of this and one of the reason why I prefer to just pick the right coin coin or those coins that are more stable, then hodl it for future profit, there's so much time involve in trading full time, but if you are the one who can allocate time,money and effort trading is a good stuff to learn.

Patience is the very key attribute a trader should have, the volatility of the coins, the market price, the unpredictable movements of chart, issues m, bullish and bearish trends are surely going to test a trader's patience. Although having knowledge is also essential, being someone who has knowledge alone but doesn't have enough patience could still result to losing and unsuccessful in trading. The need to make a very solid decision once they entered trading isn't possible without long patience.

I think a very important concept pretty dear to my heart which you really forgot is Risk Management. I consider 80% of success in Trading comes with Risk Management. If you can limit the amount of risk in every trade to maximize your return. You just don't need any guidance in selecting your trades. Because if you are trading even with a 60% win strategy a good risk management technique can increase the returns upto 80% because it teaches you how to earn greater from the trades you win and lose less from trades you lose by setting a favourable Risk to Reward Ratio. Let's consider an example to understand this.

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Case 1: 60% win ratio with 1:2 Risk Reward
You take a Risk to Reward Ration of 1:2 which means you Buy at 9000 and set your target at 9200 but keep your Stop Loss at 8900. Which means maximum loss is $100 but max profit is $200. Now if you keep this ratio over a period of say 100 Trades.

Now Assuming you get profitable in 60 trades which means you earn 60x200 which is $12000 and you lose 40x100 which means $4000. Your net gain still is $8000.

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Case 2: 80% win ratio with 1:2 Risk Reward
You take a Risk to Reward Ration of 1:2 which means you Buy at 9000 and set your target at 9100 but keep your Stop Loss at 8800. Which means maximum loss is $200 but max profit is $100. Now if you keep this ratio over a period of say 100 Trades.

Now Assuming you get profitable in 80 trades which means you earn 80x100 which is $8000 and you lose 20x200 which means $4000. Your net gain still is just $4000 with a better strategy.

---

This is why people say that it's better to have a better Risk Management strategy.

This. All the cryptocurrencies are highly correlelated. If you want to diversify your investments, buy property or hold bonds - those things are not correlated with cryptocurrency/bitcoin.

To buy a property and bold why the traders need to be here dude.

If wanna stay stronger in trading field you must need to learn the strategies from the experienced traders and go the investment step by step to increase the profit and learn all the basics.

All of OP stated was right and a good trader we should simply avoid that and also avoid possible losses.
Probably OP you must add this, the greed. Through this, you have a chance to stay away on overtrading and also chasing you lose.
Nevertheless, overall was helpful thought and as a trader, they should know regarding this matter.

Before, I was very excited to trade. Just when i thought I gain the knowledge and was prepared for trading I have realized these thing that was my mistakes when I am kinda new before.

-Overconfidence
-Don't know the right entry and exit point
-Not relying on my own TA
-Not setting stop loss

Our mistakes tend to become our lesson to improve more in trading. Also, there is always FOMO but I have managed to control my emotions now unlike before, panicking and regrets  will not help to have a healthy trades.

Diversification's not entirely needed if you're only talking about it in regards to doing so in cryptocurrency as well. Many people have done extremely well investing only in Bitcoin and holding and/or trading only Bitcoin, and a lot of alts end up going nowhere as well, even sometimes despite having a good project.

Doing your own TA is also an extremely good idea, especially initially. You're never really going to learn if you only use other peoples' work or copy other peoples' trades, and you have to start somewhere. It's tempting to just copy other peoples' trades like you can do on a site like eToro, but you really gain nothing from that.

A lot of people also rely too much on one or two indicators or end up trading with no plan to minimize risks. Risk management's extremely important because you can have a very high winning trade percentage rate but still lose a significant amount of money on just one or two failed trades. You should also take risk into account when making individual trades as well, because a lot of traders, even more experienced ones, take a significant amount of risk for just a tiny reward.

FOMO and overtrading are the most common mistakes for new traders. I know that they have a market understanding and trading ideas before they take the risk but what makes them difficult is how to control their emotion bringing them into FOMO. We can't simply escape from that emotional stress cause they are still the adoption process, it will take days, weeks or even months to adjust.

But thinking of why we should avoid diversification? It is just an option for traders, it sometimes gives a positive result and it also saves some of our funds. You'll probably be losing if using this one but it is all about to sacrifice for the sake that we never lose everything we had, but a way to start over again.

Of all the 5 things you mentioned, FOMO is the mistake that even seasoned trader cant avoid. Our worst enemy in trading is emotion. That is why there are those who just use bots to trade so that no matter what news come out the press even if it is negative or positive, the bot will not react and just follow the settings.

I like the item 2 - don't know the right entry and exit point. This is actually hard when you are trading cryptocurrencies. You can't really tell the exact points but you will have idea if you are closely following the coin. This will also minimize your losses in case the coin is heading to its dying stage. This is I think one of the difficult situations that I always encounter during trading.

BOT still has its own risks if you use it because if there is a security problem, it is possible to lose money when investing. For me you should only trade normally or invest in long-term to earn good profits because this market still has a lot of opportunities for everyone. Emotions can affect the psychology of investors but if you can control that, you will be easier to succeed when trading.

I personally do not trust any FOMO or FUD news because if I read it I will definitely make the wrong decisions and affect my profits. The best solution is still to analyze this market and make your own decisions.

Emotions and experienced will able you overtake FOMOS and over-trading. With good skills and having working system to plan ahead of time.
Your experience will guide you up to avoid making big mistakes and over-calculate the situations, many traders failed to anticipate because emotions
take over them, but if you have the right attitude and you already learned from your past trades you can control taking any quick actions without any
good assessments.

This is one of the hardest mistake to avoid. Even traders with some experience and knowledge sometimes cannot avoid them.
Not to mention for newbie traders. It's even worse than it looks. Especially if they've been following some kind of trading signals.
They just blindy followed the signal without knowing that the price already too high. And panic selling when someone spreading FUDs.

About over trading, i think it is just kind of strategy from people. Although not much people who do it, maybe out there people go full in trading. And what they do is look in market maybe stop only to take a rest. And it is not bad thing because market condition nobody know. And we talk about trading not investment, sometime suddenly market get pumped or dumped and we must ready to anything that could happen.

It's a common scenario that when a person enters in this cryptocurrency trading platform then he or she wants to trade with a huge amount, this trend is too much harmful to a newcomer, this should be avoided for the shake of a better trading opportunity, I think one special project is enough to bring back a huge profit if thing could be operated properly, not only that but also many project's investments hampers the growth rate of any trading, so I suggest always that not more than 3 projects should be run at a time, huge money involvement will bring huge mental pressure, that's why slow and steady run will bring a good run for trading purpose.

The points you have mentioned are quite good but i would like to add some more to it like never trade in coins which you dont know or in other words say don't trade without knowledge and skill in this highly volatile market. As said never invest more than you afford to loose and try to be your own avoid copying other style in trading.And above all control your emotions if you want to earn profits in cryptocurrencies.

This is what I have done the first time around doing trading.
$100 as a capital and never went overboard once I lose all of those.
The good thing is I got an idea of what should be done. Besides, that money is what I have earned from efforts of bounty hunting.
Therefore, I didn't regret that much anymore although I did when I lose it.
Somehow I learned so many things and also because of that I did research what other type of trading strategies I could use to heighten my level into making profits.

Mistakes are the best teachers but it depends if you would accept and learn from it because there were people who do directly gave up when experiencing some loss of money.

Its sad but its the reality and always invest on the amount that you can afford to lose just like the common line which can be applied on gambling too since we know that
any investment do had some risk of losing that's why its better to go minimal which wont hurt you out too much since you are already anticipating on what would happen.

Many traders will feel fear of missing, especially if the price starts to increase. They confuse how to enter the market while they don't have a target buy and sell, but they really want to make a profit. If that happens, then stop loss/take profit will not be reached, and that traders will spend too much money in one coin while that is not necessary to do that. They make another mistake by doing that over and over. Once FOMO happens, then everything will not work properly, and the traders will once again lose the money.

It's just the same as never invest into something that you don't know. Before we engage in investment make sure we know what we are dealing with because your own money depends on it. And once you fail there's no turning back because the only way is to move forward. Learn from the other mistakes and move on.

Some traders do trades with random coins because of its highly volatility in the recent days and this strategy also highly recommended among intra day traders since they can make more profits from these kind of coins but we also need to have some knowledge about that coin before buying it,see the trading volume for recent days then look who is holding most of that token,if it is not diversified then we have to avoid trading since its just bump and dump coin.

On of the biggest mistakes traders should not do is trading and making decisions durring trade with emotions.  Going into any crypto trade can lead to heavy loss. There is no need for any trader to be emotionally attached to any coin,  always remember to take profit at intervals , do not for the emotional love of the project hold any coin that you ought to have sold at the sight of profit it has yielded. Lay aside emotions durring trade and you will be able to Maximize your profit

Yes you are right. I agree on all of you knowledge sgare but I think you forget the most important thing that every traders will not to do that is too much greed. All we know that when we think as a greedy we cannot think well so we will have a wrong move or decison that will affect our investment or worst it will the reason of your loss.

Greed is not a problem but too much greed might lead into troubles. As I've always said, greed is a part of our life, it helps us to encourage, working hard in order to achieve what we've plan for. Only be bad when we use illegalities or whatever it is to succeed.
Keeping our self away from too much greed we should have to know what is satisfaction.   

That type of greed is beneficial since you are willing to aim for more success and to find good ways to benefits from the current situations, if you are aware and you can keep this kind of greediness and not to exceed to the point that you already missing lots of good opportunities. Even you have
greed inside you but practicing  to develop the right attitude and the right emotions to use will advance you to more successful trades.

This is definitely true, we will lose more if we can't handle our emotions. Cryptocurrency is volatile so there will really be lots of market changes. Our fear of missing out and impatience could only lead us to wrong decisions and future losses. That's the reason why learning should be put first so we'll know how to deal with every market situation.

FOMO is an error that most newcomers will experience, people are very susceptible to emotional domination when trading on the cryptocurrency market. Even experienced traders sometimes get FOMO.
We need to control our emotions, be patient while trading cryptocurrencies.

Pretty damn right. But there are still a lot of mistakes we often forget to avoid, overdoing something specially when we get somehow lose on a straight. Though we been noticing it late when we got tight money after that. Well, for me the key is discipline always. Discipline at everything, it will only be applicable if you are aware on what you are currently doing so that you'll be avoid or prevent potential loss or mistakes.

For sure we lose because of our own mistakes if we will not make such foolish mistakes of listening other and panic we will not lose any of our coins. Crypto market is volatile so the price of coins fluctuates but a trader must know how to handle himself and don’t take stress about this volatility just hold and trade for the long term it will help you avoid losing.

There’s a big hype in this market and FOMO can actually make profit to you if you know how to use it but of course overall it is not good. Trading is a big responsibility, we make mistakes and we should learn from that. Avoid over trading because it can still lose your money with the fees and if the coins you are trading is not performing well. Diversification is not that good it trading, and I agree on most the mistakes listed above, we should be more knowledgeable about trading.

It should be like that and we also have to know the consequences of our doings. Greediness is not bad at all if we put it in the right place and do it in the right things. But somehow people never think about instead they were badly taking advantage of their power which many of us appreciate greed is not good. It may be we could just put bad claims about greediness if that is too much, not even helping us anymore but instead, it worsens the problem at all.

FOMO is a part that I really pay attention to those 5 mistakes. however, seeing so many FUDs makes us want to sell our assets immediately. because of this, so many of us sell assets, not at the right time. even when we are very patient and confident with the strategies we have thinking, FOMO will always be a difficult challenge to stop. I might have another way to avoid FOMO, which is to try to focus elsewhere so that I can forget about my assets even if only briefly  :-\

FOMO not only include panic selling but panic buying too. I would say latter one is more serious than the former. It's panic buying that creates bubble in the market. Earlier I used to wonder why Bitcoin prices corrected like 10-15% every time after any bull run. Later I came to know that Bitcoin traders easily get triggered whenever prices increase a bit and then they pump it more than what market volume can handle. As a result, prices fall immediately after increase and most of the buyers make losses.

When you are entering trading, you must be aware of the risk you will take because, more often, you cannot win all those trades. You can lose your coins, but at the same time, you will earn it back. Sometimes when it comes to too much greed, we are risking more because we want to make more, but that was not good at all it is better to think your decisions first, it can be the cause of your failure and to lose your assets.

Greed is the cursed human emotion that will never help you in taking any right decision because it overpowers all other senses. What I believe is that greed within limits does not make any bad impact but when it totally overcomes your all other emotions, the major problem occurs then. To avoid all this mess, the best solution is to set your goals regarding profits and cash them out with little differences.

It sometimes will be considered as a curse if we never control it. It is to know that everyone has this kind of attitude, yet some of us never been dictated by their greediness and just put into at ease. This is what we should have to do otherwise it compromise our self in the future.

The most common failure/mistakes of traders is not about greediness but because of their emotions which it absolutely affects their decision leading to a miserable trading life. 

Not possible to swim if you don’t know swimming so the same way if you want to earn money in trading you will have to put effort. If you once lose you will have to put double effort and overcome the lose but as you said we should not try to get all profit at once. Better keep learning from your mistakes but take break then you will trade later.

Greed has become one of the trader's ultimate enemy and great attitude depends on a certain circumstance in terms of decision making. There was probable future gain or less loss on your part but greed already taken the mind of you to decide. Nevertheless, it is still on trader's strat how to deal with the market situation, it's a win or lose game anyways.

This is what I always think of, the emotion that should be put aside when trading giving the most of your critical thinking on playing with trading. Not just emotion but all the factors to affect your trading style and decision making should be put aside.

Unfortunately, greed is stinger than the majority of us all and even many of us that are advising always fall victim of the greed more and even if we set our goal, we still end up compromising and allowing greed to take over our emotion.

Just today, amidst all these advise against greed, someone was asking how he can make $50k trading with a very short period of time, I think the person mentioned 1 or 2 month and I wonder how the person intend to start little. With this type of goal set, it would be impossible for greed not to come in which will eventually make such person loose whatever money he or she has because they will not set their goal right to take advantage of using the tools that are available on trading platforms to control our greed.

It has to know that nobody is perfect, failures come first before we succeed is what I understand. If we suffer such failure/mistakes doesn't mean that there is no room for us to grow and realize our mistakes instead, it helps us to be strong and build a strong foundation for the future.

I may accept that sometimes I'll be in emotional trading but I can easily adjust to the situation because I know already what will happen next and what would be the possible result. It can be late but at least we are about to change the course and bring it into the right track.

This is our number one enemy, and it is ourselves, being greedy to everything will lead us to uncontrollable mind, we should just list our goal and aim for a day if we are doing day trading, and let us mindset our mind to just focus on it, and don't be too much greedy, as this can lead to losing everything if we can't control our emotion. Let's just be contented with our goal and focus on it.

Well said, people nowadays tend to do mistakes which we can't easily avoid but somehow there are some ways to overcome it. Some newbies usually made mistakes in making decisions while trading because some of them don't have enough understanding and knowledge which makes it difficult for them to make a wise decisions for themselves. Also, they don't do some research before engaging in something that is why some of them ended up feeling remorse about their decisions and actions. Actually, in making a decision we should be in a proper mindset and we should open ourselves for new learning. Trading is not easy, you need to put some effort and time to earn.

the thing that always makes me lose is not to put a stop loss, I often patient that the price will recover soon and rise again. until, in the end, I have reached a loss of 80%. from it I learned to put a stop loss every drop below 10%. and From what I learned, stop loss is very important not to lose a lot of money.

The rot cause of this panic buying and panic selling is ignorance. People get attracted towards the trends. Most of the times, investors invest out of news and hype. They need to understand that success relies in the knowledge they bear. For surviving through peaks of any season, patience is required. Blunders also take place due to lack of experience but these are important for the growth of trader.

I think that every trader is aware what he should avoid but sometimes it's hard to resist the pressure and ignore the influence of so called Bitcoin experts, social media and similar.
That is why it's very important to have self confidence and to be calm and patience. But that needs time and experience so before achieving  that level every trader will make some mistakes too.

No doubt, weak hands are very common in the crypto market but we can't link them to FOMO phenomenon. FOMO in crypto world refers to panic buying that is the feeling of owning Bitcoin when trend and value of Bitcoin is going higher and higher without actually analysing the capacity and sustainability of pump.
Panic selling on the other hand is associated with FUD phenomenon.

I want to react to your second point you mentioned above which is in relation to how one should trust his or her strategy. One thing we should know is that strategy doesn't necessarily depends on the take profit and stop loss that exist on the system because some of us work with strategy that we do take profit manually and stop losses manually.

The root cause of panic buying is probably more so the news. During the last run to almost $20k, you had Bitcoin all over the news and news people talking about how much it has gone up in the last few months. This causes people who have never even heard of Bitcoin to buy in near the top because they were thinking it would continue to go up based off what they heard. This is certainly not the case. Generally, if something is hyped up like that, I try to avoid it until the hype dies down.

diversification to other good coin is must for me, not all the time you can trade to a certain coin successfully you need to look for other coin that can give you a profit on that day because not everyday bitcoin or eth or ltc is a good coin to trade, with the other coin in the market it will help you to make a profit still.

Diversifying can give you a chance to earn more than you expected if you chose a good coin to trade, look for unstable coins that has good potential.

In my observation I think the usual mistake of a traders (especially the newbies) are FOMO, entering in trading without plan to follow can result to panic selling. They are easily trigger to sell when something went wrong, thats why its important to know the basics about trading before trying it to avoid these usual mistakes.

And which project you see those one? I never saw any project who already develop a product and pumps so hard since the one I see these days is a struggling condition and all of them didn't rise up even though they already released there main product. That's why it's better to stick on top coins since it can give as an assurance that we are in safe spot since they are the most potential alt's in the market.

I will have to agree with this.
But there have been good things also that could happen with impatience.
Sometimes you just hit the right button to sell or buy without even having any clue to what might happen next.
That is how crypto currencies work right?
It is too volatile that you cannot predict the next thing that would happen.

well trading is not the game of luck and chance that you will click the button to buy or sell without having any idea, may be sometimes you get profit but constantly doing this in trading will make you totally loss, look trading is very complicated thing on which you have to think thousand times before taking any decision, your one wrong decision can destroy your whole economy.

That is a big percentage but now that you have learnt what is important, you will be able to recover the loss anyway. I was just wandering about your asset. You expected it to rise again and that way obviously, you would have earned some profits. Either your asset was weak one or you just gave up sooner. In digital coin market, all the potential coins recover well. There is no way you can come across such a big loss with bitcoin or good altcoin.

The primary mistake of every new trader is setting up high margin as profit,it could be possible but when we aim for high the chances of losing also will get increases so learn the real nature of cryptos and try to make more out of cryptos as soon as possible,don't wait too long or you will regret about it.And no one can make perfect trades so once the trades were closed be satisfied with that,even if the prices increase after you done cashout.

This is not mated as so many projects are working so well and they are rising even faster. To search for a good project you must have skillful eyes and make good research so that you will not get scammed. It’s really harmful to get in the fake network for trading it will give you give kind of lose so just don’t lose hope you can use this forum to get information about real and developed projects for trading.

Even if you invested in ETH back then when it reached their ATH at $1200 now your asset would be dropped to $186 which is more than 80% lower. ETH is a good altcoin, right? You can imagine if he bought other altcoin which is not popular than ETH, what would happen with his asset now?

Yes. We always look for the best opportunity to trade and make the biggest profit but sometimes the more we expect profits, the higher chances of losing. So i think we should learn to trade even if we will just make a minimal profit. What is important is we are making profits everytime we trade. Long term holding is good but the problem is when will you make good profits.

No one can make profits at every trade if they are doing trading too often,so we have to accept the losses and need to learn how to minimize the losses in future which can help us to increase our total profits which result in net profits.

despite being aware of that, some people still trade every day, don't even accept their defeat, and can't control their emotions. This is also something that should be considered for every trader.
some people sometimes feel that they can reach their targets easily. however, due to uncontrolled emotions, they sometimes become hasty, thus placing high orders of the potential coins. controlling emotions can make us predict prices at the right price that the coin can reach shortly.

Day trading doesn't mean they were doing without any control even if they knew the risks,day trading can give more profits than other kind of trading methods so they want to get better at it or atleast try to be in net profits at the end of the day.Yes most people chase the losses but accepting it and try to plan strategies with the current market condition is wise men's choice.

I think that today has been all dedicated to educating the newbies because I have read several posts today all being directed to what the newbies are doing that is causing them mistakes and losses in their trade which of the post is this one. The issue I found with most new traders is that they want to quickly eat from the cake forgetting that this kind of cake would require them to learn how-to bake it first and make it done before they can eat it.

Traders needs to have a sound and very string education background about trading before they think of taking upon themselves the risks that is associated to trading. There is a need for them to actually do lots of analyses in trading, of which they would not be able to do so without looking out there for someone or something that will make them have the pure understanding.

Like you said, if you wish to eat a cake you need to learn how to bake it! Its same with doing analyses, you need to learn about how to do it and then to try to do it.
Many people get carried away with idea of profit, except the profit they don't see anything else, and that's the first mistake newcomers make when they start with trading. And lets be real with one thing, trading is not for everyone! At least daily trading is not for everyone. Long term investments are something else, you can invest in coin and just wait, if you don't know in which one just put your money in bitcoin or ethereum, among some other reputable coins.
Its hard to be focused all the time in trading, especially if you have other things to do. To keep that concentration entire time, and to not make a mistake, you need to be very strong personality. I still make mistakes, even I'm trading for years! But its one more skill, to handle the loss and to get up again and continue with trading.

Anyone that is putting in too much money on something that they are not about is making a huge mistake. I have seen a lot of newbies that joined cryptocurrency and without having the true idea of what cryptocurrencies are all about they just start investing in more money than they can afford to lose.

From what I've got to know, some of them do this due to what they were told; they heard that cryptocurrency is free money and they don't even think about the risk, thinking that they are going to just make lots of quick money.

People really need to mind the kind of words they put out about cryptocurrency, it is no free money and there are lots of risks involved in it. As the op said, anyone that wants to invest their money in cryptocurrency should always have it in mind that they are taking and putting what they can afford to lose.

It is not difficult to control emotions when participating in trading but the psychology of investors is currently unstable because the crypto market is still in a period of decline, so it is difficult to make profits. Sometimes I am in a hurry to trade and anyone will experience this bad time in investing . In my opinion, a specific investment strategy is required and must be carefully considered before making a decision because the crypto market is increasingly unpredictable.

Of course my emotions change often so now I will be patient and wait for a better time to come back.

True words, the worst thing is that now cryptocurrencies are connected with words like 'earn money fast' etc. For many young people who want to start, it could be a trap. To gain needed knowledge you have go through tens of articles and some tutorials, also experience is collected while trading. That stuff is not as simple as many people think. The key is to  earn from our mistakes, however in this case sometimes it is too late.

Agree. The point is everyone should take an education course or at least know the basics before getting into trading. FOMO is a big problem and can totally relate to it since i started trading in January 2018 and burned up :D

I became convinced that today there is a lot of information for beginners to learn how to trade, but not all information is useful for new traders.  I myself constantly study trading using certain YouTube channels, but in most I study this activity in practice, by trial and error.  And I was also convinced that most teachers who expose themselves as professionals do not understand what they are talking about and try to teach someone with a very weak basic knowledge base.

In order to achieve that, apart from learning from online tutorials or articles, the best would be to create a demo account offered by the famous exchanges and practice his knowledge. This way, he will get more experience of real world situations. Not only he should teach himself the essentials of trading but he must choose a good digital asset first and learn it deeply. This is actually more important.

Thank you for sharing your knowledge about that, it is truly helpful among traders. I would like to add some thoughts regarding this “Always avoid over trading”, many traders always did that think because they focused on just earning a big profit, but it is wrong because when we over trader our capital and get lost in trading it is so much difficult to recover our capital so that it may result in quitting in the field of trading.

I agree, trader should have discipline to avoid over trading because in the end they will coin to trend. I believe the thoughts about " every coins counts" because everytime the trader have urge to grab the opportunity to tradeeverytime they see a chance until to its lasts coin they will tradie it especially when the price hike. Trading is like gambling because of their addiction they do over trading to get huge earning and it is the main reason ti those addicted to trade even they have enough money.

When the coin is down, very few people are interested, but when the coin has risen very high, traders will tend to buy more and that is why they are often stuck in that investment. In fact, I have come across many cases in the past and if you are not careful you will easily lose money here. However, occasionally there will be coins that are easy to trade and if you're lucky you will make huge profits.

This is the reason why most newbie traders fall from their emotions because of their weak hands also as the Fear is interfering the situation and has no full control of it.
overtrading is only for the professionals ,those who can handle the situation even there are movements on all the currency Bought at the same time,if you are not a Pro then surely you will succeed to the first and will lose the next and so on.

But for people who already buy when the coin price is down, they will gladly sell the coin at a higher price. They will make a profit when the coin rise very high, but that will only happen for some traders who already use the opportunity to buy the coin at a low price. The common mistake that traders do is when the price gets a pump so high, they are panic, and they are buying instant without thinking about how long the pump will still happen. They don't want to miss a chance to get the pump, but they already miss the opportunity to buy at a low price before. We should not follow what they did because that will cause us to get lost without a chance to make a profit.

This has all been discussed in various topics, then what often becomes the problem now is the way it works to avoid these mistakes. We give examples about learning liquidity, because many do not know how and where to learn it appropriately.

Moreover, this FOMO has more to do with self-control and knowledge, in order to avoid cases like this in cryptocurrency that is having more experience and FOMO has the same case or criteria so it will be easy if you have experience.

I agree that mistakes has always been talked about but success stories are all different and that is pretty much the difficulty of trading. When you look at everyone who has failed you will see the common stuff, there are few ways you could fail and everyone who has failed has done some sort of ways of it, either it is just dealing with emotions or not researching enough or basically stuff that are derivatives of that.

However, when you check out people who made a lot of money by trading you will see that all of them have their own systems and ways which is why it is very hard to copy them since what they have done could work at that moment but could be a fail at any other time as well. I was there was 5 things every crypto trader should do instead of mistakes that should avoid.

The advise is all great but most of us already are aware of these rules, the only problem though is standing by them as emotions can often drive our actions much more than we anticipate. One aspect is that no one really knows for certain when and how much to go in and so inevitably there will be times when one makes a loss but at least its all part of the experience and one hopes that these mistakes get minimised overtime.

And this is the thing, though, although we hear and know what to do when it comes to trading it's like we don't respect those unless we experience the pain - funny isn't it!

We have read up countless suggestion and advises like this on things that should really be avoided when trading up.Its already common but people do still fail on following even these basic things.I agree that the greatest factor that affects a certain trader is into its emotion.This is a strong force that would really mess things up if you dont able to control it.Experience is one of the most needed things because as a human being its just normal for us to react when we lose money or even win towards the market, so being emotional is always there, the thing here is that we should know how to deal and react on things according to any situation.

Always avoid overtrading

This is something that I didn't had control on. When I started trading, I used to keep on checking the prices to see if I had made any profits. Whenever the price used to go low I would panic and start selling which eventually resulted in loss in most of my trades. This is why I left trading.

FOMO is the number one reason of why most traders lose their assets.

It is very bad habit that we need to eliminate them because some time panic will create a lot of loss. We shouldn't sell them immediately, we should wait for the price recovery in this way, we might recover the lost balance. Most of the panic traders will experience this type of problem in their trading.

Absolutely vital to hold yourself in bearish market and making sure you don't get over excited and over-trade during the bullish market. I have had the same problem when I was new because I was a BTC price trader initially and I used to get so excited that I would buy more and more bitcoins during a bullish run and then obviously at some point the bullish market will stop and I would panic and sell the coins.

This also had to do with faith because when I was new to the bitcoins world I never knew if bitcoins would be 0 tomorrow morning and hence when it started to fall down I was so worried that oh no the time has arrived. Now, with time I have realized that bearish rounds will come and bitcoins is never going to be zero ever.

FOMO
This was the common mistake of traders in crypto market and  that was inevitable unless you can able to control your emotions in which I think seems impossible because no matter what we try we will not manage it fully well. If we have seen the markets growth especially Bitcoin admit that we the urge to sell always come knocking on our emotion that is why I think FOMO is just normal mistake but shouldn't be tolerated.

i think this is not consider a mistake  because  i think every fomo is correct  . like for example people do fomo when btc price pump   , and who wouldnt want to sell thier bitcoins for profit ?  this is our primary plan here anyways   . its useless and will not make sense if you will only hodl and hodl and you will miss the bull run . whats worst can happen to you is that you will only sell on bad times or when the market in down because you accidentally need the money or you are afraid because you think the market will go down more  .

It is a good thing if you will be the only one falling for it, but it will not be just you.

The reason it is called FOMO is that because you are having these feelings that you want to also earn like the others, you feel you are missing out. Then people would just immediately buy and the timing would not always be better and just go down losing your profit badly.

One mistake I can never make is overtrading. I have never tried that shit before and I know the risk. There are times I will come back home and start trading, after some few trades I would notice that things are not really going the way I want it I just stop trading and look for something else to do, because I know for sure that it’s not worth it and if I continue for sure I’m just going to keep on losing my money and nothing else, so it’s best for me to just stop trading at that moment.

Greed is something else I try to avoid, there are people who would get lucky and make some good profit from their trade and instead of stopping they will then put in everything they have got to make more profit and end up losing it.

I want to add one thing, and that happened to me. try to target a price. however, sometimes traders always think that prices will continue to rise and continue to grow. it makes us not take advantage of conditions that are good. many people regret this, it happened when they did not sell their bitcoin at a price of $ 10k in February, and kept it.

Because even if we are targeting a specific price and we see that it is still going up, we are hoping that maybe we can get more if we will wait more. And that I think is the common mistake of most of us and still happening again and again because it is our nature to want more. Very seldom that we will be happy for what we have. I guess that's human nature.
But when it comes to alts, I really set a certain level when to let it go. And then when I finally sold it, I never looked back. So I don't want to see any change in price, so as not to regret or anything. It is really a headache if you will see it increasing, that's stressful for me.

These are very good points not for newbie alone but also for both intermediate and experienced traders. Impatient, fear of missing out, too many indicators are often taken good trade out of the upward momentum.

Yes. We all do mistakes but the difference is that every trader has it's own way of handling the pressures. If we trade also with greed inside, we will never turn to be profitable. Trading with emotions too is really a big NO even if we say that is too impossible. One thing for sure, the more time you spend in crypto trading, the more experiences you will gain, making more learnings you will discover.

I also want to share my experience before when I started to trade. I really laughing when I remember those experiences. Most of the 5 mistakes indicated in the first post are I experienced.
And also not putting stop-loss before, like I am over confident on every my trades before, but lesson learned.

Every traders have mistakes we can not avoid that every one experienced that 5 mistakes but the good are once they experienced that in the next trade they know what they are doing. Traders need to experience that all so that in the next trading they know what they are doing to avoid it.

You are right that overtaking should be avoided in trading if there's not much in every case I too lost my money thanks to over trading but now i'm ready to move forward with education from there. Don't quit the business but avoid overtrading.

Yes we already knew what we must avoid in trading to be able to earn. Now, I think we must knew what we must do to avoid it. I admit some of the 5 mistakes you've said is not easy to avoid. I really have a hard time to overcome FOMO. I know I am good at the second one you've mentioned but it is not enough to bw just good at one. With that I still commit mistakes.

Agree, these mistakes are lessons of experience that strike at the weakest points of a trader, from capital management to overconfidence and greed without stopping, a trader who has felt and faced these experiences, the quality and success rate they will increase very high. For traders who are not clear with these concepts and experiences, their success will be very low because the first point I have always seen from new traders, they often overestimate themselves, the sense of pride and stubbornness is something that needs to be abraded by failures

That's the thing with us, Humans we have the elementary awareness of what's good or bad and for some reason some of us still stride towards the bad thing.  Greed is one of them and I'm sure most of us on here, in a nonobjective scenario, know exactly what to do and what the rules are but yet most of us struggle to apply these rules.
Like, how many times have you said to yourself this is the last round but then you still found yourself still doing that thing whatever it was even after the 3rd round or so? Being disciplined is very hard, especially when you don't have anyone around you to stop it.

Trading is everything which depends on experience. Why are the most experienced traders the ones who are having major profits as compared to newbies? That is only because they have experience and can handle any situation carefully with their best strategies. This makes them have major profits and least loss. Newbies especially go for direct trading without thinking about what would happen if the market gets reversed which also does not make them prepare a plan b to exit the markets.

This also lands them in excess loss many times. At the initial stage, even the newbies should never think about the profit or loss but they should constantly keep on increasing their experience which would surely be a life saver for them in the nearly approaching future.

Each of these points is actually necessary but I do not really think that people would follow this thread to start with their trading. I think that people can learn most from their experience. They would always keep on learning from the actual trades they perform. Like, at the first time, they would not set up a stop-loss which would make them have excess loss only because they price moved in the reversal direction much faster. They would than set up a stop-loss from the second order. The same would be followed for each of the 5 points you mention.

Newbies might just come to know about these precautions to be taken before starting to trade but they would not actually follow these until they personally feel need for those.

There is no need to rely on other people or people around you to change your bad habits, because it is useless if people around you do not have a high sense of caring to change your bad habits. So in this case, yourself, which basically will make you more disciplined by realizing all the risks because indeed, disciplined trading is very important and we should always have a high priority to remain disciplined in any situation, because with discipline at least you will can control emotions better and thus, greed will be avoided and always consider more mature every decision that will be made quickly.

Mostly FOMO was the reason why traders always failed because they can't handle too much emotion, eagerness to sell and buy coins at the wrong time especially the newbies. But I cannot blame them because even I, became a victim of my own emotions.

Now talking with Diversification, I think this one of the best ways to reduce the risk exposure of our investment but we must know where to place those investments of us not just on random coins across the market. Choose those coins that you think would be profitable or you could just go visit the CMC and pick the coins who placed at the top since they have the largest volume in the market.

Start Small, Know when you are wrong and don't marry a Trade.

Your all advices are correct. When I was new to trading I suffered a huge loss due to the FOMO buy many influencer  trapped me. I suffered this loss due to lack of proper guidelines. There are many traders who face huge loss because of fomo buy. And they couldn't use stoploss the right way. As a result, when the market goes down, they are loss continuously.

The most common reason why people get lost in trading is having a lack of knowledge about it, trading is not a simple thing, so if you don't have knowledge or skills about it then you should have not tried it because for sure you will lose your money.

Trading is not like investing, you have more chance to earn from investing because you can hold your money if the market is low, then withdraw it if the market goes high. That's it, investing is simple compared to trading, even you are a beginner you can still earn from investing, but if you are a beginner and don't have knowledge about trading then for sure you won't be able to earn from it.

You should have enough knowledge about different currencies or the currency that you are going to trade for you to earn from it. You may use the internet, this forum, etc. to learn things and basics about trading so you won't be able to lose your money.

Thank you for sharing such useful information. Her real to know.

until traders do mistake and they themselves wants to improve , no words can save them from making losses they have to understand all by themselves while trading live no words will come to mind , they will do this mistakes again and again , traders who think of improving by there own interest will improve in trading

Exactly true, the biggest teacher of all time is life, there is no teacher that can teach anything better than life can teach it to a person.

You can try to help people as much as possible but no one will learn it better than their own trading and learning. If someone tells you to put a stop loss and you do, you will not learn anything, you just did what you were told to do and you have an idea of why you did that but not a great grasp of why.

But, if you fail to listen and you do not put a stop loss, you will eventually lose money and that will cause you to actually learn why you should put a stop loss when trading. That is basically the reason why experience triumphs over education almost in all parts of the world, I would trust a 53 year old garbage man with my money over an 19 year old economy student.

The common mistake people make is that they don't have enough knowledge of the market as they mistake investing as trading. investing is like you throw the money and sit idly but trading is like you have to have constant knowledge of the market every time. When the market is dull, you have to hold your money. when the market is high, you have to withdraw your money immediately. Another mistake one should avoid is to stop trading in every other site. Not every site is secured and trusted, so always try to verify if the site you are trading on is trusted or not.

The problem is it’s rather difficult to distinguish greed from a prospective trading opportunity at the moment when you make decisions regarding opening or closing a deal.
This can only be understood by the end result. Therefore, it is extremely necessary and useful to keep a constant history of your transactions, as well as regularly analyze them.

Although you lost when coin trading have lower price you must stop lost than you lost all your money in coin, I think when your coin not have bigger chance for growing up better cut lost than you must hold without have potential for growing up and you must lost all your money.

I have tried this plan many times, but the prices are kept falling whenever we see an upward trend and downturn in the market. That's why we should always hold the profit we made in previous trades because trading is all buying and selling, buying again with the profits we made, whenever we lose value.

I think most of the traders here are somehow faced with the above errors, because they are quite typical. I also fell into the trap of my ignorance of stop loss.
I was very surprised at the surprise when I found out that there is a functional capable of giving me the necessary tool for advanced control of transactions offline.
If I knew this before, I would have saved a lot of money.

I add important things to me and maybe other people also need, never make a purchase with all the funds, do it in stages. Buying in stages is important to cover losses. Except in the condition of bitcoin or altcoin the price is really low

This is good advice, but it is rather difficult to implement for beginners. When prices are low and you have a certain capital to buy, then you will not think about buying in parts.
After all, if the price is now at its lowest point, then what's the point of taking risks and leaving part of the funds for the future.
However, I agree with you that it is necessary to take into account all the risks and break the portfolio into components.

As for FOMO, it all depends, yes FOMO is usually not a good thing one should do. But that a FOMO stops doesn’t still mean it’s late for you to buy. You can still rush in at the time the FOMO started and make profit from the market. So, it’s usually by luck, if you’re lucky it will work out for you.

Secondly, you’re right about putting in too much money too soon. I have seen people that borrowed money to use them to buy Bitcoin, including the guy that convinced his dad that they should all their savings money in Bitcoin because he thought the price would go up and he would make profit, but at the end they were disappointed. Anyone that wants to invest should start little and as time goes on you can increase the amount.

Indeed. And that'll ruin it for the people who have already established themselves in the trading scene. As we all know trading is just basically money circulating in a group of people where the ones who gained money "profitted" and the ones who lost money "lost". There has to be equilibrium in a system to ensure its profitability, and if everyone wins, then in a sense everyone loses too. Not to sound like an arrogant prick, but I believe that losses add fun to the trading industry and it's the money losses and gains that make trading bonds and assets flavorful.

Thank you ! So much useful info. Personally I found some more things recently

This is an article I found at the service I use https://www.bitinsure.com/ (https://www.bitinsure.com/)

Avoid greed

One of the most harmful feelings in your mind during trading is greed. Just remember what you think when the price rises after you opened a long position. It really requires lots of effort to close the position, as you are wishing more profit flowing into your wallet, admiring growing trading volumes and amazing news about this particular cryptocurrency which is so promising and will grow forever. Here it is necessary to take off the blinders and understand that eventually, the price stops. Be it a gradual decrease or a dump, probably technical problems on the exchange, if you are a trader (not a long-term investor), you should fix your profit not waiting for the reversal trend. The exit point should be identified in advance, basing on the previous coin dynamics, your ambitions, strategy, trading volumes, social media mentionings, the reaction of whales (huge market players) and many more, not enabling the greed to manage your actions.

Fix profit by parts

The top level of the price (or bottom in case of short) is very appealing, but keep in mind that it is seen on the chart only after the price passes it already, while during an uptrend, for example, it can be hardly ever noticed.  That is why a wise idea to benefit from the price movement is to grab profits by parts on the way to the top or bottom. If you do not have enough time to monitor the price you can set the orders one by one on the way to the rally. Here is a useful trick: Consider support and resistance lines, and set take profit orders below support (long) and above resistance (short). The amount of the part depends on your strategy and aims. The only advice is not to close the position on the way to top/bottom. Leave a part of the initial sum (like 10% of it), as you never know if there is a jackpot after.

Do not put all your eggs in one basket

One more key concept is the diversification of the portfolio and calculation of its amount. Actually, it is a wide and fascinating point to discuss, and only the core points of it are regarded in this article.

It does not matter how promising one or another asset seems to you, try to focus on a range of opportunities, as in the crypto world something can suddenly go wrong (as anything in life). Just imagine that all the hype and price growth is ruined by one negative piece of news or was created artificially! Or, for instance, the decision of a huge market player which has a tangible impact on the price fluctuations. Never go for broke!

The wisely composed portfolio implies several types of assets of different industries and risks. The number of assets has almost the only limitation which is the number of positions you are able to manage, as even profitable coins should be monitored and controlled. Otherwise, it is not as effective as it could be, but we definitely need maximum effectiveness. What is more, no control means stress, which is not what successful trading implies.

No doubt, these features are up to your aims and overall strategy, however, to minimize risks, it is better to use up to 10% on each asset. In case of your firm confidence in the asset let it be more, but remember that all the rising tendencies finally finish. Therefore, having one outstanding asset should be better supplemented by finding more new opportunities to switch the attention to.

Below you can see a balanced portfolio example with various assets included. By the way, the detailed balance is calculated in statistics module in Bitinsure and presents your portfolio in a visual way.


Be forward-looking: Reinvest, invest, convert

It is one of the most effective ways to use your gains to multiply it. There are several options to use it, some of which are the following:

30% reinvest in new prospective altcoins,
25% enlarge the most profitable positions you have currently,
25% invest in other assets,
20% convert into fiat.
Pay attention to the last two points, as they are acting as a preparation for “hard times” in crypto. Of course, it may be difficult to resist the temptation of investing all into new coins, but thinking a few moves ahead a trader uses the profit

Project diversification is key but in terms of re-investing this can be something more challenging for people who aren't always keeping an eye on how the market is doing. Re-investing is also more risky since you really have to be an optimist and have an outweighed benefit which usually comes from long term hodling.

Be careful who you follow or take advice from. There are many scammers out there.

Every Mistakes that we can make it gives to us an idea or lesson on how it cannot do it again.

But mistakes is always there even we avoid it sometimes can still encountered it just like in trading many traders are very careful in buying coins and selling it but look at them they still making a mistake and count to think of it they are professional and expert trader what more those trader who are beginners.

But even that we still need to be vigilan or do our best to avoid mistake while doing trading because if we do little wrong move money will be involved so if we want to earn make sure you know the do's and don'ts in trading.