5 errors when buying crypto currency

[AlexZHankok]

Everyone who comes into the crypto business makes almost the same mistakes because of his inexperience, patterned thinking and, panicking under the influence of the crowd. If discard all illusions about our own "EGO", we are all imperfect people and prone to make mistakes. The financial market likes such amateurs and absorbs them with guts, because it is the only one which is always right and remains in a huge plus. And the question is - how to deal with it? It's quite simple – rule out these mistakes and you will defeat a crowd of losers and climb to the top of financial success.

Mistake № 1. Buying on the top (loss of profit syndrome).
A huge number of people enter the market at that moment when it's time to get out of it, regardless of the scale in which they trade. If the coin has recently shown X5-X10, it makes sense to look the other way, to look for a fresh product - coins that have successfully completed the ICO, have collected HardCap, but have not yet received their Xs. Of course, in each case there is still a chance for profit from further coin growth, but the probability of a decline in this moment is usually very high. Eventually, an inexperienced investor sees how the pump of the coin ends and he suffers losses of 100%. As a rule, any growth price is accompanied by an increasing volume and it is fraught - if there are buyers, then there must be seller. As a consequence, the increasing volume in the growing market may be a sign of the top achievement, as volume is a leading indicator for assessing future price development. People themselves generate volumes at a peak - see how the price increases, experience a "loss of profit syndrome" and soon receive losses.
 
To avoid this situation, the following rules should be adhered to:

1. Never buy when volume increases if the price is at the top of the market and there are no valid reasons for further price rise, and instead an artificial pumping of the price occurs.
2. You can buy in a growing market, but only if there is a break through the resistance level (maybe for someone it's a new word, but it's better to learn the basics of trading).
3. Always remember, there are 2 sell/buy glasses on the stock exchange, which means that against your deal for a purchase is a sale, where an experienced player comes out of a long position to re-buy at the bottom.


Mistake № 2. Sale of coins on the bottom (fear of losing everything).
No less number of investors falls into this situation. Surprisingly, this is a mirror image of the "Buying on the top" scenario, the same high volume combined with the heavily falling prices. Only in this situation we already experience not the "lost profit syndrome", but "the fear of losing everything". Negative news, panic on the forums and big red candles. Typically, this situation on the market has a pointed depression, such as the letter "V" (see screenshot). Selling in this situation, you will very soon face a price reversal and regret that you have succumbed to fear, trying to leave at least something of your investment.
How to avoid such an error?

Follow the same rules as before:
1. Never sell when volume increases if the price is at the bottom of the market, especially when all support levels are broken and there is no valid reasons for further price drop.
2. Sell in a declining market, supported by volume, only if you really see that there will be a break through the support level.
3. Always remember: on your sell, more experienced players want to be proficient; for your sell is an order where another investment fund or a large trader enters a long position to buy.


Mistake № 3. Growth leaders sale
It often happens that the investor, instead of long-term investments, is limited to short-term investments. Having received the coin's growth in 3-5 times, he sees a small drawdown after growth and makes the assumption that this is a signal for sale, the coin should fall. To his great disappointment, after some period of calm and movement in the lateral range, the price soon easily rushes to new heights. And what about trade on the correction, you ask? Gentlemen – this is an art that you still need to master, because you are starting a dangerous game against the trend. As a rule, the growth leaders do not go for a turn, but stop in a narrow corridor for a short respite and a further jump up. Of course, reversals of leaders happen, but most often this is due to SCAM of the project itself or serious security problems of the technology itself.

Use the following rules for this item:
1. Do not take short positions on the growth leaders, this is an investment for 6-12 months minimum.
2. If an outset emerged on the uptrend, you can count on a new breakthrough up (the longer the lateral trend lasts, the more chances to go higher up, breaking through the resistance level on the top).


Mistake № 4. Buying leaders who have recently sank to the bottom.
This error is a consequence of the newcomer's greed and rashness. Typically, the crypto business comes, hearing in the news of super profits, for example, about how Bitcoin did 18000% for a paltry 5 years. Looking at the Bitcoin, Etherium, Verge graph, the newcomer looks and imagines that he now had if he bought Bitcoin for $1000 in 2010-2011 or Etherium for $2, and even just investing in Verge $100, now he could drive on a steep wheelbarrow. In such moments, as a rule, we would like to think that the price always comes back and it is necessary to find a coin with a drawdown of 99%, of the latter, it is a sensational BitConnect project. I will not write about it, this coin refers to 5-th error. (This paragraph does not apply to the situation with Bitcoin in 2013-2014, when there was a hard correction).

Here is only one rule: do not take coins, the drawdown for which was more than 70%. Any technology (project) has its beginning and end, and during the rapid development of ICO (other more advanced technologies, projects) it is foolish to expect a quick recovery of the scam position of the project that has lost the key staff of the development team or key investors. The latter, most likely, at this time invest their funds in Etherium 4.01.


Mistake № 5. Purchase coins from scam projects.
This error is a consequence of the previous one. Greed has ruined us.
Very often I hear about over profits in Landing ICO, investing in InvestBox and so on. If the project offers more profit in the shortest possible time - think! Most likely you are offered to enter the financial pyramid and will be enriched by the miracle of the project written on a cheap Internet template. Yes, you can quickly make money here, but you can lose everything quickly. Therefore, these projects do not suit us, we are investors and traders, not roulette players.

In this situation, observe the following rules:
- Do not buy unknown coins, which are not available on such authoritative resources as CoinMarketCap, Investing.com
- Do not get involved in projects that offer you an income of 10-20% per day, most likely it's a banal pyramid. If you went into it, you can never leave.
- Watch coins on CoinMarketCap, it is desirable that their daily volume was more than 1 million, the total capitalization above 60 million and they traded on leading exchanges such as Bittrex, Binance. As a rule, such coins than are backed up and the chance that this scam-project is not great.


I want to add to everything that I'm saying above: the market of crypto-currencies is still young, the total capitalization is negligible, 2% of the entire population is aware of mining and blockchain, so there is still time for investments and making money.

Good luck and profit to all and thanks for your +Merit.

Link to my original post in Russian https://bitcointalk.org/index.php?topic=2846459.msg29198113#msg29198113

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[boyshx]

Very in depth study buddy! Thats a good analysis and representation of the whole thing. Yup, your description with the conclusion part is the most beautifully put here and hope that it help many traders that are new on the forum.

Mistake № 4. Buying leaders who have recently sank to the bottom.

I liked this one. It relates to one of the project in which I invested heavily recently and I expected a lot form the same. The project was complete success in the beginning but later on it dropped like crazy. However, I did not bother to buy it on mass level because I was expecting that it will renounce surely. But it was really really foolish to over trust it and now I'm completely in the loss.

Yes, you have made good point really and wish I would have read it earlier. I mean at least it would have given me some spark not to buy.

This guide will surely help others. Keep it updated.

[Algochain]

1. thinking the market CAP has meaning
2. not noticing the trade volume
3. not reading the white paper
4. investing in something that has no actual demand
5. selling when everyone else is selling

[DanielRR1997]

1- DON’T USE THE WRONG EXCHANGE : To put this particular tip into perspective, not every cryptocurrency exchange is designed to be used for various altcoins. There are some clear market leaders who can be trusted when it comes to trading alternate cryptocurrencies, whereas others seem slightly shady. Using the wrong exchange can result in withdrawals not being honored or trading markets becoming inaccessible at the wrong time. Always do your own research before trusting an unknown company with your money, as it can be difficult-  if not impossible – to get it out again when things go awry.

2- BUYING INTO SCAMS : The world of alternative cryptocurrencies is filled with many opportunities, although not everything is what it seems. Unfortunately for novice traders, it is rather difficult to distinguish between a worthwhile and useless attacking. At the rate at which coins are being “developed” these days, any new coin should be avoided until it properly establishes itself in the market. At the same time, investors and speculators want to buy potentially powerful coins as cheap as possible. Getting in at a later stage will decrease the chances of making a big profit along the way. There is a very fine balance to walk between buying coins cheap and investing in a pump-and-dump scam at the wrong time. Most novice traders experience the latter option well before they will make their first major profit.

3- PANIC-BASED DECISIONS: One thing every cryptocurrency trader needs to keep in mind is how panic can be one of the worst motivators to make the right trade. Markets are very volatile in the altcoin scene, and it doesn’t take much volume to send things in either direction. There is nothing wrong with trusting a gut feeling, but panic should never determine how and when one trades. To this day, a lot of novice cryptocurrency traders let their actions be guided by panic and fear

[aervin11]

On point. Though I have learned some of this from my past trading experiences which was hard. If only this post comes before I've jumped into trading  . Well done sir. Though this one deserves merit, I got nothing to share. Again thank you and would follow you for more of your posts like this one.

[ChickenDuck]

It’s would be better if you can post your daily buy/sell suggestion so that people here can follow and confirm if you are really a good trader.

Everyone who comes into the crypto business makes almost the same mistakes because of his inexperience, patterned thinking and, panicking under the influence of the crowd. If discard all illusions about our own "EGO", we are all imperfect people and prone to make mistakes. The financial market likes such amateurs and absorbs them with guts, because it is the only one which is always right and remains in a huge plus. And the question is - how to deal with it? It's quite simple – rule out these mistakes and you will defeat a crowd of losers and climb to the top of financial success.

Mistake № 1. Buying on the top (loss of profit syndrome).
A huge number of people enter the market at that moment when it's time to get out of it, regardless of the scale in which they trade. If the coin has recently shown X5-X10, it makes sense to look the other way, to look for a fresh product - coins that have successfully completed the ICO, have collected HardCap, but have not yet received their Xs. Of course, in each case there is still a chance for profit from further coin growth, but the probability of a decline in this moment is usually very high. Eventually, an inexperienced investor sees how the pump of the coin ends and he suffers losses of 100%. As a rule, any growth price is accompanied by an increasing volume and it is fraught - if there are buyers, then there must be seller. As a consequence, the increasing volume in the growing market may be a sign of the top achievement, as volume is a leading indicator for assessing future price development. People themselves generate volumes at a peak - see how the price increases, experience a "loss of profit syndrome" and soon receive losses.
 
To avoid this situation, the following rules should be adhered to:

1. Never buy when volume increases if the price is at the top of the market and there are no valid reasons for further price rise, and instead an artificial pumping of the price occurs.
2. You can buy in a growing market, but only if there is a break through the resistance level (maybe for someone it's a new word, but it's better to learn the basics of trading).
3. Always remember, there are 2 sell/buy glasses on the stock exchange, which means that against your deal for a purchase is a sale, where an experienced player comes out of a long position to re-buy at the bottom.
https://s14.postimg.org/btgthtzs1/2018-01-30_14.20.05.png

Mistake № 2. Sale of coins on the bottom (fear of losing everything).
No less number of investors falls into this situation. Surprisingly, this is a mirror image of the "Buying on the top" scenario, the same high volume combined with the heavily falling prices. Only in this situation we already experience not the "lost profit syndrome", but "the fear of losing everything". Negative news, panic on the forums and big red candles. Typically, this situation on the market has a pointed depression, such as the letter "V" (see screenshot). Selling in this situation, you will very soon face a price reversal and regret that you have succumbed to fear, trying to leave at least something of your investment.
How to avoid such an error?

Follow the same rules as before:
1. Never sell when volume increases if the price is at the bottom of the market, especially when all support levels are broken and there is no valid reasons for further price drop.
2. Sell in a declining market, supported by volume, only if you really see that there will be a break through the support level.
3. Always remember: on your sell, more experienced players want to be proficient; for your sell is an order where another investment fund or a large trader enters a long position to buy.
https://s14.postimg.org/mubymfcgx/2018-01-30_14.14.57.png

Mistake № 3. Growth leaders sale
It often happens that the investor, instead of long-term investments, is limited to short-term investments. Having received the coin's growth in 3-5 times, he sees a small drawdown after growth and makes the assumption that this is a signal for sale, the coin should fall. To his great disappointment, after some period of calm and movement in the lateral range, the price soon easily rushes to new heights. And what about trade on the correction, you ask? Gentlemen – this is an art that you still need to master, because you are starting a dangerous game against the trend. As a rule, the growth leaders do not go for a turn, but stop in a narrow corridor for a short respite and a further jump up. Of course, reversals of leaders happen, but most often this is due to SCAM of the project itself or serious security problems of the technology itself.

Use the following rules for this item:
1. Do not take short positions on the growth leaders, this is an investment for 6-12 months minimum.
2. If an outset emerged on the uptrend, you can count on a new breakthrough up (the longer the lateral trend lasts, the more chances to go higher up, breaking through the resistance level on the top).


Mistake № 4. Buying leaders who have recently sank to the bottom.
This error is a consequence of the newcomer's greed and rashness. Typically, the crypto business comes, hearing in the news of super profits, for example, about how Bitcoin did 18000% for a paltry 5 years. Looking at the Bitcoin, Etherium, Verge graph, the newcomer looks and imagines that he now had if he bought Bitcoin for $1000 in 2010-2011 or Etherium for $2, and even just investing in Verge $100, now he could drive on a steep wheelbarrow. In such moments, as a rule, we would like to think that the price always comes back and it is necessary to find a coin with a drawdown of 99%, of the latter, it is a sensational BitConnect project. I will not write about it, this coin refers to 5-th error. (This paragraph does not apply to the situation with Bitcoin in 2013-2014, when there was a hard correction).

Here is only one rule: do not take coins, the drawdown for which was more than 70%. Any technology (project) has its beginning and end, and during the rapid development of ICO (other more advanced technologies, projects) it is foolish to expect a quick recovery of the scam position of the project that has lost the key staff of the development team or key investors. The latter, most likely, at this time invest their funds in Etherium 4.01.


Mistake № 5. Purchase coins from scam projects.
This error is a consequence of the previous one. Greed has ruined us.
Very often I hear about over profits in Landing ICO, investing in InvestBox and so on. If the project offers more profit in the shortest possible time - think! Most likely you are offered to enter the financial pyramid and will be enriched by the miracle of the project written on a cheap Internet template. Yes, you can quickly make money here, but you can lose everything quickly. Therefore, these projects do not suit us, we are investors and traders, not roulette players.

In this situation, observe the following rules:
- Do not buy unknown coins, which are not available on such authoritative resources as CoinMarketCap, Investing.com
- Do not get involved in projects that offer you an income of 10-20% per day, most likely it's a banal pyramid. If you went into it, you can never leave.
- Watch coins on CoinMarketCap, it is desirable that their daily volume was more than 1 million, the total capitalization above 60 million and they traded on leading exchanges such as Bittrex, Binance. As a rule, such coins than are backed up and the chance that this scam-project is not great.


I want to add to everything that I'm saying above: the market of crypto-currencies is still young, the total capitalization is negligible, 2% of the entire population is aware of mining and blockchain, so there is still time for investments and making money.

Good luck and profit to all and thanks for your +Merit.

Link to my original post in Russian https://bitcointalk.org/index.php?topic=2846459.msg29198113#msg29198113

[Ayamj]

Thanks for taking your time, crypto is very complicated and one needs to be careful

[buytheeffinD]

Well thought out post it is a shame that most people won't take the time to read it. However, it will only benefit those who do more, I knew most things on there but still helpful to the community and newbies. Thanks OP!

[AlexZHankok]

Very in depth study buddy! Thats a good analysis and representation of the whole thing. Yup, your description with the conclusion part is the most beautifully put here and hope that it help many traders that are new on the forum.

Mistake № 4. Buying leaders who have recently sank to the bottom.

I liked this one. It relates to one of the project in which I invested heavily recently and I expected a lot form the same. The project was complete success in the beginning but later on it dropped like crazy. However, I did not bother to buy it on mass level because I was expecting that it will renounce surely. But it was really really foolish to over trust it and now I'm completely in the loss.

Yes, you have made good point really and wish I would have read it earlier. I mean at least it would have given me some spark not to buy.

This guide will surely help others. Keep it updated.

Thank you. I consider the 4th point to be the most important at the moment. Many beginners come across on scam projects. I'm also very sorry that you suffered a loss. But we all know that mistakes make us harder and stronger, so you will return your investments more than once!

[AlexZHankok]

It’s would be better if you can post your daily buy/sell suggestion so that people here can follow and confirm if you are really a good trader.

Unfortunately, I know English very badly and I can not write messages qualitatively
Your proposal I take note, I'll try to translate my articles for the main thread of the forum more often.

[AlexZHankok]

1- DON’T USE THE WRONG EXCHANGE
2- BUYING INTO SCAMS
3- PANIC-BASED DECISIONS

Totally agree with you. Very valuable additions. The most important rule in trading: you need to think against the crowd.

[Fatunad]

It’s would be better if you can post your daily buy/sell suggestion so that people here can follow and confirm if you are really a good trader.

Unfortunately, I know English very badly and I can not write messages qualitatively
Your proposal I take note, I'll try to translate my articles for the main thread of the forum more often.

Its not really necessary for you to perfect grammar on updating up some things which i do see a good idea since each post is really very informative not only on newbie traders but also into amateur or mid-tier traders. These kind of informations would really contribute into their knowledge and awareness that can be applied into their trading career or course. I would wait for your article man which they are really worth to read on.

[AlexZHankok]

On point. Though I have learned some of this from my past trading experiences which was hard. If only this post comes before I've jumped into trading  . Well done sir. Though this one deserves merit, I got nothing to share. Again thank you and would follow you for more of your posts like this one.

I'm very glad that the article was useful for you. I hope that with the introduction of merit on the forum will become more quality posts. A new article soon.

[AlexZHankok]

It’s would be better if you can post your daily buy/sell suggestion so that people here can follow and confirm if you are really a good trader.

Unfortunately, I know English very badly and I can not write messages qualitatively
Your proposal I take note, I'll try to translate my articles for the main thread of the forum more often.

Its not really necessary for you to perfect grammar on updating up some things which i do see a good idea since each post is really very informative not only on newbie traders but also into amateur or mid-tier traders. These kind of informations would really contribute into their knowledge and awareness that can be applied into their trading career or course. I would wait for your article man which they are really worth to read on.

Ok, I agree So I will appear more often on the main branch.

[AlexZHankok]

Well thought out post it is a shame that most people won't take the time to read it. However, it will only benefit those who do more, I knew most things on there but still helpful to the community and newbies. Thanks OP!

Thank you. Let's hope that this article will help someone not to make these mistakes

[aoihs00]

This tutorial couldn't be better than this one and you made it elaborative. I read it and will come here again and agin if needed to see if I'm missing any point or not. Just in case you know!

The noobs actually fall for the Mistake No 5, buying from the scam project. There are many projects which come into effect and announce their presence in the forum itself. Their white papers are pretty cool, available in all the languages so they make great impression in all the region and later on their popularity grows on the basis of buzz that goes into the ANN discussion. When a noob hits such ANN they feel that this is just amazing project and there can never be such good project. So they go and put big money at stake thus making thing worse. Later on such project may become scam in no time once scammers wallets are filled.

Its good that you have mentioned it here. This is all for those who are willing to invest money on new projects.

[tambok]

Well thought out post it is a shame that most people won't take the time to read it. However, it will only benefit those who do more, I knew most things on there but still helpful to the community and newbies. Thanks OP!

Thank you. Let's hope that this article will help someone not to make these mistakes

In addition to that, when entering a trading or buying crypto some are expecting big in return immediately which should not, we should always think positive yes but not to expect too much as this would lead us to panic that we are losing big based on our expectation. And, lack of enough information or not doing enough research is also a factor.

[shimbark123]

Among your 5 errors, the second one is the most common for me of them all. Many people are like this(including me lol), and I bet that it is not healthy for us to be like that. But because of the psychological effect of getting into trades in which you're losing is somewhat lethal to many people.

[BrewMaster]

i just wanted to add that the root of all of these mistakes comes from people not knowing what they are doing. i have seen a lot of people, mostly new to cryptocurrency market who call what they are doing "trading" but in fact they are gambling.
every single one of their actions are based on pure guesswork and random choices. you can even call it a "gut feeling" and most of the times the feeling comes from the things they read online from pumpers.

[mulukey]

The error you are presenting here is what I experienced and stumbled upon when I first invested in the cryptocurrency market. These are fundamental errors but it can cause investors to lose a lot of assets when entering the market. Good and stable psychology is a necessary factor for investors in this market due to fluctuations. I have good advice for new investors to prepare themselves a good knowledge of the market before deciding to invest.

[lienfaye]

Im guilty with number 2 and 5 because of greed when I was just starting as a trader. I thought selling when the price is in dips can save you from losing your money and buying any coins will do just go with the flow like other traders (stupid thinking indeed).

Newbies can learn in this thread of yours so thank you for the effort making these because it can be helpful for new traders to consider before starting to buy.

[alyssa85]

Also - don't forget risk management. Don't go all in. Instead only stake 1/10th of your stash on a trade. That way, if you get it wrong and you get stopped out, you still have money to place another trade.

Most noobs think that going all in will help them make profits quicker - but it also gets you wiped out quicker.

[reymartH]

The crypto market is extremely volatile, which means price swings are normal, and if you get spooked easily, you will lose money. Panic selling is a common mistake beginners make, where they first get into a market without much research and then, when faced with a sudden drop, sell to ‘cut their losses’. The problem with this approach is that once you sell, you’ve actually lost money (you don’t lose until you sell), and while in some cases, cutting your losses does make sense, most coins will bounce back in days, if not hours, and then the same people, seeing a surge, buy back at higher prices, only to repeat the cycle. Buying high and selling low is a one-way ticket to going broke.

[Tactical Genius]

Thank you so so much for such an in depth analysis.I have always searched for simple rules like yours to use during trading and thankfully i found this post.Thank you once again.I have really lost a lot trading badly of late especially in the last one month of turbulence.

[AlexZHankok]

Guys thank you so much. I did not expect such a small article to be very useful 
Most traders and investors pass through these errors - this is normal, this makes us stronger.

[vintages]

What a well researched and written article. I couldn't agree more on the last pieces about not  buying an unknown coin. This is the mistake most new traders make, including, when I started out as an early trader. And most trader prefer to start out through ICO instead of buying coins which are already listed. This is another means whereby people get scammed. Though not all ICOs are scam.

[Zanrrio20]

Another of the many mistakes we make, at least with bitcoin ... It is very intuitive to measure the benefits of our investments in cryptocurrencies in dollars or euros because it is the currency we use, mainly due to the great volatility that Bitcoin has. But the reality is that we must measure these benefits always in BTCs, specifically in satoshis which is the smallest fraction of Bitcoin that can be managed. Recall that a million satoshis are a BTC.

The reason why this has to be done is because for each financial asset, we must measure it against a reference point. That is the standard to invest in any financial asset.

[reymartH]

The market doesn't care if you win or lose. Many traders make the mistake of chasing a poorly performing trade just because the crypto they’re trading has caused them to lose money before and it “owes them”. This superstitious thinking is all too common in the crypto ecosystem.

[katiecbell]

Im guilty with number 2 and 5 because of greed when I was just starting as a trader. I thought selling when the price is in dips can save you from losing your money and buying any coins will do just go with the flow like other traders (stupid thinking indeed).

Newbies can learn in this thread of yours so thank you for the effort making these because it can be helpful for new traders to consider before starting to buy.

This is the most common mistake made by newbies that they blindly follow the crowd. Most of the panic selling of expensive coins such as bitcoin is done by new investors of this currency and these are regretting badly after spending few months in the crypto market.

We should know that bitcoin is one of the most amazing currencies and it is not easy to earn even a single bitcoin these days. Always stay cool and calm when trading.

[CryptoBry]

I believe these are indeed the most common mistakes especially made by those who are just new to the cryptocurrency market...but sadly even old-timers can also be victims as we are letting our emotions rule our judgement. The most important point is never buy a coin when it is at its highest peak and never sell when it is at its low point. Simple but of course implementing can be difficult sometimes. There will always be risks associated anything to do especially if we are involved in buying/selling cryptocurrencies and tokenized assets.

[AlexZHankok]

Now the situation on the market is similar. Many inexperienced traders sell bitcoin, altcoins. They are afraid that the market will come down even lower. But you do not need to panic at all. Here it is the bottom on which you must necessarily purchase for a new one, and not sell what you have now.

Inexperienced trader


trader who learns from mistakes

[CarnagexD]

It is always a good thing to look up upon learning the proper way of trading on the people who have a decent experience with dealing with tradings and investments with cryptocurreny. I think most of people need to rely on the experience of people so we could have a preparatory knowledge with the system of trading that could actually help us to deal with right decision and making a good trading. But we also need to try and make our own move so we could learn from our own experience and develop as an individual.

[redsun114]

The market doesn't care if you win or lose. Many traders make the mistake of chasing a poorly performing trade just because the crypto they’re trading has caused them to lose money before and it “owes them”. This superstitious thinking is all too common in the crypto ecosystem.

Listen brother, we have to be ourselves whatever happens. I have seen so many people who were better traders and then they fell down from this level of success. What was the reason? Only considering themselves better than others and wrong choosing of coins. Research is always welcomed when you talk about getting success.

[metenjean]

Mistake № 1. Buying on the top (loss of profit syndrome).
A huge number of people enter the market at that moment when it's time to get out of it, regardless of the scale in which they trade. If the coin has recently shown X5-X10, it makes sense to look the other way, to look for a fresh product - coins that have successfully completed the ICO, have collected HardCap, but have not yet received their Xs.
 
To avoid this situation, the following rules should be adhered to:

1. Never buy when volume increases if the price is at the top of the market and there are no valid reasons for further price rise, and instead an artificial pumping of the price occurs.
2. You can buy in a growing market, but only if there is a break through the resistance level (maybe for someone it's a new word, but it's better to learn the basics of trading).
3. Always remember, there are 2 sell/buy glasses on the stock exchange, which means that against your deal for a purchase is a sale, where an experienced player comes out of a long position to re-buy at the bottom.

Mistake № 2. Sale of coins on the bottom (fear of losing everything).
No less number of investors falls into this situation. Surprisingly, this is a mirror image of the "Buying on the top" scenario, the same high volume combined with the heavily falling prices. Only in this situation we already experience not the "lost profit syndrome", but "the fear of losing everything". Negative news, panic on the forums and big red candles. Typically, this situation on the market has a pointed depression, such as the letter "V" (see screenshot). Selling in this situation, you will very soon face a price reversal and regret that you have succumbed to fear, trying to leave at least something of your investment.
How to avoid such an error?

Follow the same rules as before:
1. Never sell when volume increases if the price is at the bottom of the market, especially when all support levels are broken and there is no valid reasons for further price drop.
2. Sell in a declining market, supported by volume, only if you really see that there will be a break through the support level.
3. Always remember: on your sell, more experienced players want to be proficient; for your sell is an order where another investment fund or a large trader enters a long position to buy.

I do agreed not to buying a scam project or ICOs that you dont recognize, but how can you define a project a Scam or not?? Except for lending coin which have we all know as Ponzi scheme that it is a scam project from the very 1st. Because when buying a coin you do have detailed plan about why you buying this coin.
For the first half paragraph i certainly agree with you to not buying a new ICO coin that already gaining 5-10x price from the initial ICOs price, but what about the major coin such as bitcoin, ethereum, xrp, stellar? And mostly i think this kind of technique define errors but dont define about how to fix the mistakes, support and resistance is just a minor indicator, if you're still riding the trend then i dont really have any problem buying higher when the price got a high volume, and sold all of my capital if the price declined and the trend begin shifting, start buying bitcoin since last year in $4k range when people start spouting about bitcoin wont reach higher price, it will burst into bubble and i do hold it until last week when price decreased below $10k. I believed most of people here dont even know how to indicate a top or bottom, so we got no idea if the price has reach bottom or top yet, because no one can predict a future, but instead we can make an exit plan before begin to trade and follow that plan 

[AlexZHankok]

I do agreed not to buying a scam project or ICOs that you dont recognize, but how can you define a project a Scam or not?? Except for lending coin which have we all know as Ponzi scheme that it is a scam project from the very 1st. Because when buying a coin you do have detailed plan about why you buying this coin.
For the first half paragraph i certainly agree with you to not buying a new ICO coin that already gaining 5-10x price from the initial ICOs price, but what about the major coin such as bitcoin, ethereum, xrp, stellar? And mostly i think this kind of technique define errors but dont define about how to fix the mistakes, support and resistance is just a minor indicator, if you're still riding the trend then i dont really have any problem buying higher when the price got a high volume, and sold all of my capital if the price declined and the trend begin shifting, start buying bitcoin since last year in $4k range when people start spouting about bitcoin wont reach higher price, it will burst into bubble and i do hold it until last week when price decreased below $10k. I believed most of people here dont even know how to indicate a top or bottom, so we got no idea if the price has reach bottom or top yet, because no one can predict a future, but instead we can make an exit plan before begin to trade and follow that plan 

-Do not buy when the market is already overbought. Wait for a rollback.
-Do not sell when everyone sells.
Here is the main message of this article. Patience is always rewarded.
No one can determine the exact point of sale or purchase. Only analysis and your assumptions.
There are plenty of information on the ICO scams on the forum.
But if necessary, I can write my own set of rules, how to analyze ICO

[ajmapalo22]

I don't believe in errors with regards to crypto currency investment, all I know is that there is a proper timing in everything and some just encounter bitcoin out of their luck. Bitcoin is unpredictable so we can never tell if its good time to hold or sell them. I tried holding bitcoin up to this moment after experiencing continuous increase last December believing it will go even much higher but it did not appreciate but instead drop so bad but it does not mean I made an error I know in right time bitcoin value will soon recover.

[di.ako.toh]

I think one of the most error on buying in cryptocurrency is buying at the high price. We should take time in buying if coins is at high value in the market, because its tendency is to go down the price because its volatilitu, so it is no more profitable when it happens.

[izanagi narukami]

Bitcoin trading have their own risk but it's worth for the risk because bitcoin can make you rich in 1 year ( Compare with gold investment )
These example are great and can be my example to explain for my friend , the risk / error thing in crypto trading.

~Overall just HOLD btc, period.

[Caladonian]

Before I also did the wrong practice of selling when I seen that the price is falling, I tend to think that instead of losing more better to sell it and buy other coins which are moving upwards, the problem is instead of gaining back those loses most of the time I keep on placing in the wrong entry point making it to lose more, but now after those mistakes I make it sure that I'm not selling any coins if I still have loses, holding until the value that I desire has been reached.

[trucker_bill]

thanks, thats a really good explanation.

I would like to add one rule:

ALWAYS do EVERYTHING yourself. If you don't do your homework and learn how to do stuff yourself, you will always be DEPENDENT.
You don't need to be an "IT-guy". You just need to be interested and curious enough and start with little steps.

[Victorycoin]

I think one of the most error on buying in cryptocurrency is buying at the high price. We should take time in buying if coins is at high value in the market, because its tendency is to go down the price because its volatilitu, so it is no more profitable when it happens.

In essence, all the mistakes highlighted by OP in exception of the 5th one, were hitting on the need for any trader to first acquire the right trading knowledge and skills before ever embarking on trading, because that's where the road map to well informed trading decisions emanates from. Beyond that, the common mistake most trader commit, is that of failing to realize that the market has a mind of its own and so would most often go contrary to expectations.

[drachman]

Great post OP to this I will add another mistake and that is buying coins that do not have a reason to exist at all, we see many projects out there and many do not have demand or even the need to use a blockchain, so these kind of projects despite not being an outright scam are simply unneeded and are there just for the devs to earn money and for speculators to try to get money out of people.

[Hannahanto]

Great post OP to this I will add another mistake and that is buying coins that do not have a reason to exist at all, we see any projects out there and many do not have demand or even the need to use a blockchain, so these kind of projects despite not being an outright scam are simply unneeded and are there just for the devs toe earn money and for speculators to try to get money out of people.

Yes. Good contribution to this forum. We have so many threads under Bitcoin discussion repeating the same questions like when to buy / sell / ideas on trading / when and where to invest and etc. Such questions even considered as shit threads / spam threads. Keep this thread highlighted. Kindly provide every day's buy and sell strategy which will make investors aware of current situation. This would even support the posters contribute quality posts as well. More to go. Good dude.

[SparrowMano]

It is true that most of the time we are informed too late and we tend to buy back to the top

[Hamphser]

Great post OP to this I will add another mistake and that is buying coins that do not have a reason to exist at all, we see any projects out there and many do not have demand or even the need to use a blockchain, so these kind of projects despite not being an outright scam are simply unneeded and are there just for the devs toe earn money and for speculators to try to get money out of people.

Yes. Good contribution to this forum. We have so many threads under Bitcoin discussion repeating the same questions like when to buy / sell / ideas on trading / when and where to invest and etc. Such questions even considered as shit threads / spam threads. Keep this thread highlighted. Kindly provide every day's buy and sell strategy which will make investors aware of current situation. This would even support the posters contribute quality posts as well. More to go. Good dude.

I agree that this is way more informative since it do have visuals giving out some informations on how market moves and the possible actions that we should made but I would say this kind of movement doesn't happen anytime or do always be followed we do know on how volatile the cryptomarket is but yet this is very informative and somehow can be used along our trading career.

[Granxis]

The most important feature of crypto money is the price movements it has done in the past. Coins, which are not particularly affected by the price declines of Bitcoin, have always earned their investors.

[metenjean]

-Do not buy when the market is already overbought. Wait for a rollback.
-Do not sell when everyone sells.
Here is the main message of this article. Patience is always rewarded.
No one can determine the exact point of sale or purchase. Only analysis and your assumptions.
There are plenty of information on the ICO scams on the forum.
But if necessary, I can write my own set of rules, how to analyze ICO

I dont think you got what i mean in the last post, i do agreed with your opinion about not buying ICOs when it reached a peak price and how to analyze it will be based on individual perceptions, but the one i was asking is what you said not to buy when market is already overbought and not to sell when everyone sells, how do you determine whether the market is already overbought or oversold?? BTC already had downfall since it reached $18k, and i sold all my bitcoin when it reached below $10k, and i regretted it more if i dont sold it at that time. Patience is rewarded but ignorance isnt the same as patience, perhaps trading strategies is more than rewarded in this time 

[AlexZHankok]

Great post OP to this I will add another mistake and that is buying coins that do not have a reason to exist at all, we see any projects out there and many do not have demand or even the need to use a blockchain, so these kind of projects despite not being an outright scam are simply unneeded and are there just for the devs toe earn money and for speculators to try to get money out of people.

I completely agree with you. 90% of all projects are dummy. In the coming years, we will see profound corrections for them or they will simply disappear from the market.

[AlexZHankok]

-Do not buy when the market is already overbought. Wait for a rollback.
-Do not sell when everyone sells.
Here is the main message of this article. Patience is always rewarded.
No one can determine the exact point of sale or purchase. Only analysis and your assumptions.
There are plenty of information on the ICO scams on the forum.
But if necessary, I can write my own set of rules, how to analyze ICO

I dont think you got what i mean in the last post, i do agreed with your opinion about not buying ICOs when it reached a peak price and how to analyze it will be based on individual perceptions, but the one i was asking is what you said not to buy when market is already overbought and not to sell when everyone sells, how do you determine whether the market is already overbought or oversold?? BTC already had downfall since it reached $18k, and i sold all my bitcoin when it reached below $10k, and i regretted it more if i dont sold it at that time. Patience is rewarded but ignorance isnt the same as patience, perhaps trading strategies is more than rewarded in this time 

Maybe I did not translate your comment correctly. Sorry
How do I determine the top of the market or the bottom of the market?
Deep corrections I determine from the historical graphs-the market is cyclical. Every year in January-February and July-August, he undergoes a strong correction.
Minor corrections (short positions)
1. I use the support / resistance levels of the trend line.
2. Patterns (flags, double bottom / double ceiling, head and shoulders, wedge, pendant)
3. RSI-look at the overbought / oversold zones
4. The news fund
5. The most important thing is that this analysis should be done at least two timeframes. For example 1 hour and 4 hours.

[Dart18]

Sale of coins at the bottom. The most used mistake of all.
They will never learn.

The idea of losing it all. They want to at least save some even for the expense of losing a lot instead of waiting if it will come back.
Lack of faith from the altcoin. Why buy at the first place? To just lose money? Are you that rich?
I guess it could never be stopped once emotions came in.

[yanto@1977]

Everyone who comes into the crypto business makes almost the same mistakes because of his inexperience, patterned thinking and, panicking under the influence of the crowd. If discard all illusions about our own "EGO", we are all imperfect people and prone to make mistakes. The financial market likes such amateurs and absorbs them with guts, because it is the only one which is always right and remains in a huge plus. And the question is - how to deal with it? It's quite simple – rule out these mistakes and you will defeat a crowd of losers and climb to the top of financial success.

Mistake № 1. Buying on the top (loss of profit syndrome).
A huge number of people enter the market at that moment when it's time to get out of it, regardless of the scale in which they trade. If the coin has recently shown X5-X10, it makes sense to look the other way, to look for a fresh product - coins that have successfully completed the ICO, have collected HardCap, but have not yet received their Xs. Of course, in each case there is still a chance for profit from further coin growth, but the probability of a decline in this moment is usually very high. Eventually, an inexperienced investor sees how the pump of the coin ends and he suffers losses of 100%. As a rule, any growth price is accompanied by an increasing volume and it is fraught - if there are buyers, then there must be seller. As a consequence, the increasing volume in the growing market may be a sign of the top achievement, as volume is a leading indicator for assessing future price development. People themselves generate volumes at a peak - see how the price increases, experience a "loss of profit syndrome" and soon receive losses.
 
To avoid this situation, the following rules should be adhered to:

1. Never buy when volume increases if the price is at the top of the market and there are no valid reasons for further price rise, and instead an artificial pumping of the price occurs.
2. You can buy in a growing market, but only if there is a break through the resistance level (maybe for someone it's a new word, but it's better to learn the basics of trading).
3. Always remember, there are 2 sell/buy glasses on the stock exchange, which means that against your deal for a purchase is a sale, where an experienced player comes out of a long position to re-buy at the bottom.


Mistake № 2. Sale of coins on the bottom (fear of losing everything).
No less number of investors falls into this situation. Surprisingly, this is a mirror image of the "Buying on the top" scenario, the same high volume combined with the heavily falling prices. Only in this situation we already experience not the "lost profit syndrome", but "the fear of losing everything". Negative news, panic on the forums and big red candles. Typically, this situation on the market has a pointed depression, such as the letter "V" (see screenshot). Selling in this situation, you will very soon face a price reversal and regret that you have succumbed to fear, trying to leave at least something of your investment.
How to avoid such an error?

Follow the same rules as before:
1. Never sell when volume increases if the price is at the bottom of the market, especially when all support levels are broken and there is no valid reasons for further price drop.
2. Sell in a declining market, supported by volume, only if you really see that there will be a break through the support level.
3. Always remember: on your sell, more experienced players want to be proficient; for your sell is an order where another investment fund or a large trader enters a long position to buy.


Mistake № 3. Growth leaders sale
It often happens that the investor, instead of long-term investments, is limited to short-term investments. Having received the coin's growth in 3-5 times, he sees a small drawdown after growth and makes the assumption that this is a signal for sale, the coin should fall. To his great disappointment, after some period of calm and movement in the lateral range, the price soon easily rushes to new heights. And what about trade on the correction, you ask? Gentlemen – this is an art that you still need to master, because you are starting a dangerous game against the trend. As a rule, the growth leaders do not go for a turn, but stop in a narrow corridor for a short respite and a further jump up. Of course, reversals of leaders happen, but most often this is due to SCAM of the project itself or serious security problems of the technology itself.

Use the following rules for this item:
1. Do not take short positions on the growth leaders, this is an investment for 6-12 months minimum.
2. If an outset emerged on the uptrend, you can count on a new breakthrough up (the longer the lateral trend lasts, the more chances to go higher up, breaking through the resistance level on the top).


Mistake № 4. Buying leaders who have recently sank to the bottom.
This error is a consequence of the newcomer's greed and rashness. Typically, the crypto business comes, hearing in the news of super profits, for example, about how Bitcoin did 18000% for a paltry 5 years. Looking at the Bitcoin, Etherium, Verge graph, the newcomer looks and imagines that he now had if he bought Bitcoin for $1000 in 2010-2011 or Etherium for $2, and even just investing in Verge $100, now he could drive on a steep wheelbarrow. In such moments, as a rule, we would like to think that the price always comes back and it is necessary to find a coin with a drawdown of 99%, of the latter, it is a sensational BitConnect project. I will not write about it, this coin refers to 5-th error. (This paragraph does not apply to the situation with Bitcoin in 2013-2014, when there was a hard correction).

Here is only one rule: do not take coins, the drawdown for which was more than 70%. Any technology (project) has its beginning and end, and during the rapid development of ICO (other more advanced technologies, projects) it is foolish to expect a quick recovery of the scam position of the project that has lost the key staff of the development team or key investors. The latter, most likely, at this time invest their funds in Etherium 4.01.


Mistake № 5. Purchase coins from scam projects.
This error is a consequence of the previous one. Greed has ruined us.
Very often I hear about over profits in Landing ICO, investing in InvestBox and so on. If the project offers more profit in the shortest possible time - think! Most likely you are offered to enter the financial pyramid and will be enriched by the miracle of the project written on a cheap Internet template. Yes, you can quickly make money here, but you can lose everything quickly. Therefore, these projects do not suit us, we are investors and traders, not roulette players.

In this situation, observe the following rules:
- Do not buy unknown coins, which are not available on such authoritative resources as CoinMarketCap, Investing.com
- Do not get involved in projects that offer you an income of 10-20% per day, most likely it's a banal pyramid. If you went into it, you can never leave.
- Watch coins on CoinMarketCap, it is desirable that their daily volume was more than 1 million, the total capitalization above 60 million and they traded on leading exchanges such as Bittrex, Binance. As a rule, such coins than are backed up and the chance that this scam-project is not great.


I want to add to everything that I'm saying above: the market of crypto-currencies is still young, the total capitalization is negligible, 2% of the entire population is aware of mining and blockchain, so there is still time for investments and making money.

Good luck and profit to all and thanks for your +Merit.

Link to my original post in Russian https://bitcointalk.org/index.php?topic=2846459.msg29198113#msg29198113

Very good, you have brilliant explanation about it and look clear on me. Your last post is more interesting, you give us advice the right step if crypto market not stable or just to fix our strategy. It will change my mindset and strategy because from beginning I learn only from faith without understanding. Thank you so much.

[Caladonian]

-Do not buy when the market is already overbought. Wait for a rollback.
-Do not sell when everyone sells.
Here is the main message of this article. Patience is always rewarded.
No one can determine the exact point of sale or purchase. Only analysis and your assumptions.
There are plenty of information on the ICO scams on the forum.
But if necessary, I can write my own set of rules, how to analyze ICO

I dont think you got what i mean in the last post, i do agreed with your opinion about not buying ICOs when it reached a peak price and how to analyze it will be based on individual perceptions, but the one i was asking is what you said not to buy when market is already overbought and not to sell when everyone sells, how do you determine whether the market is already overbought or oversold?? BTC already had downfall since it reached $18k, and i sold all my bitcoin when it reached below $10k, and i regretted it more if i dont sold it at that time. Patience is rewarded but ignorance isnt the same as patience, perhaps trading strategies is more than rewarded in this time 

Maybe I did not translate your comment correctly. Sorry
How do I determine the top of the market or the bottom of the market?
Deep corrections I determine from the historical graphs-the market is cyclical. Every year in January-February and July-August, he undergoes a strong correction.
Minor corrections (short positions)
1. I use the support / resistance levels of the trend line.
2. Patterns (flags, double bottom / double ceiling, head and shoulders, wedge, pendant)
3. RSI-look at the overbought / oversold zones
4. The news fund
5. The most important thing is that this analysis should be done at least two timeframes. For example 1 hour and 4 hours.

This should be remember before doing some trade especially when we are seeing some situations that really affects our emotions, learning how to analyze and know the factors where projects can possibly move, each informations are important, that's why trading needs more time to learn, being equipped by facts and not just speculations that most of
the time create wrong assessment.

[Zsywt1024]

The value is value ,Very good article
read the whitepaper
and see lots scams
increase experience

[trickyriky]

I think mistakes #1 and #2 described here are so evident to each one, that it seems we should not talk about them. Curious, but still people are selling coins when the market is falling.

[raven7886]

It is true that most of the time we are informed too late and we tend to buy back to the top

One thing is if you are trading, and you do not know what you are doing, or necessarily do not have a strategy, then you are gambling. Trading is a different ball game and you need to be able to make right decisions for yourself which you cannot if you do not learn.

A lot of people who call themselves trader always like joining a moving train, which is a bad thing. Buy when everyone has sold out with no one to sell anymore, and there is a chance from the indicators that an uptrend is about to start on any coin. A lot of you are busy looking for information and those giving them out are pump and dump scammers, which exactly what you have described is what they do.

[metenjean]

-Do not buy when the market is already overbought. Wait for a rollback.
-Do not sell when everyone sells.
Here is the main message of this article. Patience is always rewarded.
No one can determine the exact point of sale or purchase. Only analysis and your assumptions.
There are plenty of information on the ICO scams on the forum.
But if necessary, I can write my own set of rules, how to analyze ICO

I dont think you got what i mean in the last post, i do agreed with your opinion about not buying ICOs when it reached a peak price and how to analyze it will be based on individual perceptions, but the one i was asking is what you said not to buy when market is already overbought and not to sell when everyone sells, how do you determine whether the market is already overbought or oversold?? BTC already had downfall since it reached $18k, and i sold all my bitcoin when it reached below $10k, and i regretted it more if i dont sold it at that time. Patience is rewarded but ignorance isnt the same as patience, perhaps trading strategies is more than rewarded in this time 

Maybe I did not translate your comment correctly. Sorry
How do I determine the top of the market or the bottom of the market?
Deep corrections I determine from the historical graphs-the market is cyclical. Every year in January-February and July-August, he undergoes a strong correction.
Minor corrections (short positions)
1. I use the support / resistance levels of the trend line.
2. Patterns (flags, double bottom / double ceiling, head and shoulders, wedge, pendant)
3. RSI-look at the overbought / oversold zones
4. The news fund
5. The most important thing is that this analysis should be done at least two timeframes. For example 1 hour and 4 hours.

Thank you for this information, this is what i would love to hear because you really describe a strategies about how to identify a good support resistance and how to identify if the market has already reached the oversold or overebought area. I do tend to look for higher timeframe to define market trend and use lower timeframes to identify entry points and this is a great educational post that we need to look at least between 2 or more timeframe before considering an entry point 

[Duogembrot]

I think it's only simple to see the graph if the price graph is too high you should not need to rush to buy because the price will definitely drop sharply and you can open buy order at low price and the key is in the patience. so what I can conclude is buy at cheap price and sell at expensive price.

[Apened]

I think it's only simple to see the graph if the price graph is too high you should not need to rush to buy because the price will definitely drop sharply and you can open buy order at low price and the key is in the patience. so what I can conclude is buy at cheap price and sell at expensive price.

It takes time hence not all can simly know when they are about to enter because we are just humans and even pro traders and trainers sometimes have a feeling of Fomo in a specific coin. I admit that im buying when the price is high and i did that 5 errors that the OP posted but one thing i always didn't forget to learn when this thing go wrong.

[Layonk]

Mistake № 5. Purchase coins from scam projects.

This is the most error than can make trader loss all of money in investing money.
This should be avoid by do good researching, researching mean checking the full detail about project.

[AdamRay]

Mistake № 5. Purchase coins from scam projects.

This is the most error than can make trader loss all of money in investing money.
This should be avoid by do good researching, researching mean checking the full detail about project.

I've also had this problem quite a lot before, I often invested by referrals from others without scrutinizing each project and the consequence of it made me lose a lot of property. I advise investors to research and analyze the project carefully before deciding whether to invest or not because the money is yours and you will understand what you should do with it.

[francedeni]

I think mistakes #1 and #2 described here are so evident to each one, that it seems we should not talk about them. Curious, but still people are selling coins when the market is falling.

The mistakes 1&2 seems not all can follow and most mistakes from a trader. That's an error when selling coins when the market is going to go down. Buying high and selling low most error also from a trader.

[Kevin77]

The most important feature of crypto money is the price movements it has done in the past. Coins, which are not particularly affected by the price declines of Bitcoin, have always earned their investors.

The truth is that some coins really do have some huge community and really do not get affected much when bitcoin is having a rally. However, one cannot really know sometimes, so the best thing is to always be at alert when in a market.
Know when it is time to get out and buy back lower, know when you did not make the right call and even when you make a right call, know when to sell. At the end, for any investor or trader to be successful, knowledge is the only thing that can help them.

[AlexZHankok]

-Do not buy when the market is already overbought. Wait for a rollback.
-Do not sell when everyone sells.
Here is the main message of this article. Patience is always rewarded.
No one can determine the exact point of sale or purchase. Only analysis and your assumptions.
There are plenty of information on the ICO scams on the forum.
But if necessary, I can write my own set of rules, how to analyze ICO

I dont think you got what i mean in the last post, i do agreed with your opinion about not buying ICOs when it reached a peak price and how to analyze it will be based on individual perceptions, but the one i was asking is what you said not to buy when market is already overbought and not to sell when everyone sells, how do you determine whether the market is already overbought or oversold?? BTC already had downfall since it reached $18k, and i sold all my bitcoin when it reached below $10k, and i regretted it more if i dont sold it at that time. Patience is rewarded but ignorance isnt the same as patience, perhaps trading strategies is more than rewarded in this time 

Maybe I did not translate your comment correctly. Sorry
How do I determine the top of the market or the bottom of the market?
Deep corrections I determine from the historical graphs-the market is cyclical. Every year in January-February and July-August, he undergoes a strong correction.
Minor corrections (short positions)
1. I use the support / resistance levels of the trend line.
2. Patterns (flags, double bottom / double ceiling, head and shoulders, wedge, pendant)
3. RSI-look at the overbought / oversold zones
4. The news fund
5. The most important thing is that this analysis should be done at least two timeframes. For example 1 hour and 4 hours.

Thank you for this information, this is what i would love to hear because you really describe a strategies about how to identify a good support resistance and how to identify if the market has already reached the oversold or overebought area. I do tend to look for higher timeframe to define market trend and use lower timeframes to identify entry points and this is a great educational post that we need to look at least between 2 or more timeframe before considering an entry point 

You are welcome. It's always nice to receive positive feedback.

[AlexZHankok]

I think it's only simple to see the graph if the price graph is too high you should not need to rush to buy because the price will definitely drop sharply and you can open buy order at low price and the key is in the patience. so what I can conclude is buy at cheap price and sell at expensive price.

Of course, so it is necessary to do. But, as a rule, beginners do not look at the charts, but buy on the HYIP.

[AlexZHankok]

The most important feature of crypto money is the price movements it has done in the past. Coins, which are not particularly affected by the price declines of Bitcoin, have always earned their investors.

The truth is that some coins really do have some huge community and really do not get affected much when bitcoin is having a rally. However, one cannot really know sometimes, so the best thing is to always be at alert when in a market.
Know when it is time to get out and buy back lower, know when you did not make the right call and even when you make a right call, know when to sell. At the end, for any investor or trader to be successful, knowledge is the only thing that can help them.

I agree with you. Also do not forget that knowledge comes with experience. And even having a huge amount of knowledge and experience behind our shoulders, we can make mistakes. This is normal. In any case, this market is very volatile and can bring many more surprises in the future.

[Wilsonong222]

Everyone who comes into the crypto business makes almost the same mistakes because of his inexperience, patterned thinking and, panicking under the influence of the crowd. If discard all illusions about our own "EGO", we are all imperfect people and prone to make mistakes. The financial market likes such amateurs and absorbs them with guts, because it is the only one which is always right and remains in a huge plus. And the question is - how to deal with it? It's quite simple – rule out these mistakes and you will defeat a crowd of losers and climb to the top of financial success.

Mistake № 1. Buying on the top (loss of profit syndrome).
A huge number of people enter the market at that moment when it's time to get out of it, regardless of the scale in which they trade. If the coin has recently shown X5-X10, it makes sense to look the other way, to look for a fresh product - coins that have successfully completed the ICO, have collected HardCap, but have not yet received their Xs. Of course, in each case there is still a chance for profit from further coin growth, but the probability of a decline in this moment is usually very high. Eventually, an inexperienced investor sees how the pump of the coin ends and he suffers losses of 100%. As a rule, any growth price is accompanied by an increasing volume and it is fraught - if there are buyers, then there must be seller. As a consequence, the increasing volume in the growing market may be a sign of the top achievement, as volume is a leading indicator for assessing future price development. People themselves generate volumes at a peak - see how the price increases, experience a "loss of profit syndrome" and soon receive losses.
 
To avoid this situation, the following rules should be adhered to:

1. Never buy when volume increases if the price is at the top of the market and there are no valid reasons for further price rise, and instead an artificial pumping of the price occurs.
2. You can buy in a growing market, but only if there is a break through the resistance level (maybe for someone it's a new word, but it's better to learn the basics of trading).
3. Always remember, there are 2 sell/buy glasses on the stock exchange, which means that against your deal for a purchase is a sale, where an experienced player comes out of a long position to re-buy at the bottom.


Mistake № 2. Sale of coins on the bottom (fear of losing everything).
No less number of investors falls into this situation. Surprisingly, this is a mirror image of the "Buying on the top" scenario, the same high volume combined with the heavily falling prices. Only in this situation we already experience not the "lost profit syndrome", but "the fear of losing everything". Negative news, panic on the forums and big red candles. Typically, this situation on the market has a pointed depression, such as the letter "V" (see screenshot). Selling in this situation, you will very soon face a price reversal and regret that you have succumbed to fear, trying to leave at least something of your investment.
How to avoid such an error?

Follow the same rules as before:
1. Never sell when volume increases if the price is at the bottom of the market, especially when all support levels are broken and there is no valid reasons for further price drop.
2. Sell in a declining market, supported by volume, only if you really see that there will be a break through the support level.
3. Always remember: on your sell, more experienced players want to be proficient; for your sell is an order where another investment fund or a large trader enters a long position to buy.


Mistake № 3. Growth leaders sale
It often happens that the investor, instead of long-term investments, is limited to short-term investments. Having received the coin's growth in 3-5 times, he sees a small drawdown after growth and makes the assumption that this is a signal for sale, the coin should fall. To his great disappointment, after some period of calm and movement in the lateral range, the price soon easily rushes to new heights. And what about trade on the correction, you ask? Gentlemen – this is an art that you still need to master, because you are starting a dangerous game against the trend. As a rule, the growth leaders do not go for a turn, but stop in a narrow corridor for a short respite and a further jump up. Of course, reversals of leaders happen, but most often this is due to SCAM of the project itself or serious security problems of the technology itself.

Use the following rules for this item:
1. Do not take short positions on the growth leaders, this is an investment for 6-12 months minimum.
2. If an outset emerged on the uptrend, you can count on a new breakthrough up (the longer the lateral trend lasts, the more chances to go higher up, breaking through the resistance level on the top).


Mistake № 4. Buying leaders who have recently sank to the bottom.
This error is a consequence of the newcomer's greed and rashness. Typically, the crypto business comes, hearing in the news of super profits, for example, about how Bitcoin did 18000% for a paltry 5 years. Looking at the Bitcoin, Etherium, Verge graph, the newcomer looks and imagines that he now had if he bought Bitcoin for $1000 in 2010-2011 or Etherium for $2, and even just investing in Verge $100, now he could drive on a steep wheelbarrow. In such moments, as a rule, we would like to think that the price always comes back and it is necessary to find a coin with a drawdown of 99%, of the latter, it is a sensational BitConnect project. I will not write about it, this coin refers to 5-th error. (This paragraph does not apply to the situation with Bitcoin in 2013-2014, when there was a hard correction).

Here is only one rule: do not take coins, the drawdown for which was more than 70%. Any technology (project) has its beginning and end, and during the rapid development of ICO (other more advanced technologies, projects) it is foolish to expect a quick recovery of the scam position of the project that has lost the key staff of the development team or key investors. The latter, most likely, at this time invest their funds in Etherium 4.01.


Mistake № 5. Purchase coins from scam projects.
This error is a consequence of the previous one. Greed has ruined us.
Very often I hear about over profits in Landing ICO, investing in InvestBox and so on. If the project offers more profit in the shortest possible time - think! Most likely you are offered to enter the financial pyramid and will be enriched by the miracle of the project written on a cheap Internet template. Yes, you can quickly make money here, but you can lose everything quickly. Therefore, these projects do not suit us, we are investors and traders, not roulette players.

In this situation, observe the following rules:
- Do not buy unknown coins, which are not available on such authoritative resources as CoinMarketCap, Investing.com
- Do not get involved in projects that offer you an income of 10-20% per day, most likely it's a banal pyramid. If you went into it, you can never leave.
- Watch coins on CoinMarketCap, it is desirable that their daily volume was more than 1 million, the total capitalization above 60 million and they traded on leading exchanges such as Bittrex, Binance. As a rule, such coins than are backed up and the chance that this scam-project is not great.


I want to add to everything that I'm saying above: the market of crypto-currencies is still young, the total capitalization is negligible, 2% of the entire population is aware of mining and blockchain, so there is still time for investments and making money.

Good luck and profit to all and thanks for your +Merit.

Link to my original post in Russian https://bitcointalk.org/index.php?topic=2846459.msg29198113#msg29198113

Reversing or correcting all the mistakes mention here by OP doesn’t guaranty us to become successful trader but most likely to increase our chance of victory.

But if this will be applied all in long term hold it is most certain that success is within our reach. I still prefer holding the coins for long term. I am not fan of trading, I think trading is zero sum game where in the end; your profit is not substantial compare to gains from long term.

[erickkyut]

This thread is very educational especially for the newbies in this community. It can help us to avoid those fatal mistakes. To those who experienced those mistakes, I hope that you've learned something from it and it will never happen again because you now know how to handle it. I like readin thread like this and I want to thank the OP for bringing this up!

[AlexZHankok]

Reversing or correcting all the mistakes mention here by OP doesn’t guaranty us to become successful trader but most likely to increase our chance of victory.

But if this will be applied all in long term hold it is most certain that success is within our reach. I still prefer holding the coins for long term. I am not fan of trading, I think trading is zero sum game where in the end; your profit is not substantial compare to gains from long term.

I agree with you. 2017 showed that investing in the crypto currency gave more profit than trading. Trading is better to do when the market is in an uncertain (stagnant) situation. But to this situation you have to come up with a lot of experience behind your shoulders, otherwise you will fail.

[BettingTips]

These mistakes are very popular and I think almost trader also made these mistakes when they traded . It's much more difficulty to be able to buy in low and sell in high than just talk. There are some traders use trading signal to know these points but there are also professional trader can be able to analyze the price chart so they can be able to know when they should buy and sell

[[As]]

The main problem is to sell in low and buy in high.

[Cryptagio]

Eventually it all breaks down to FOMO (fear of missing out)

[coino.org]

Wow, just bought some Liza on yobit, I guess this is a 5th error, I should get rid of greed and select quality project with a future development, but this high ROI makes me crazy

[InvestMen]

Should I regret this mistake? In no case! After all, if you are upset because of this, then along with the growth of the course my grief will grow. A distressed investor will not be able to make informed decisions. Similarly, it is pointless to regret that you did not buy bitokoyn when it cost much less. You need to regret that you do not buy it now.

[Arngrim]

Thanks for that explanation.
Now, will they listen to this? This is one hell of a good read specially for newbies.
We could somehow prevent another person from being scammed if only he will read into this.
Facebook already made its part, although it is not that good because of the good ICO's that are incoming.
It will still be better if we get more investors on our side without a problem.

[sachdientugoogle]

I'm not sure exactly how it happened but I went on EtherDelta to sell some shitcoins that I had gotten from airdrops... and I ended up buying about $90 of one for well, well above what it was worth. So after I sold a few good airdrops for ETH I came to sell some Zero ETH.

[donbasxii]

thanks for sharing. Very informative post

[carlisle1]

1. thinking the market CAP has meaning
2. not noticing the trade volume
3. not reading the white paper
4. investing in something that has no actual demand
5. selling when everyone else is selling

good comment,this is a typical errors we usually conducted,we dont need long story to tell whats the real meaning of errors.this one indicates it all,since this is the same faults we usually commit.i always fail because of not reading the white papers investing with no actual demands things that im particular now becae of many mistakes

[AlexZHankok]

These mistakes are very popular and I think almost trader also made these mistakes when they traded . It's much more difficulty to be able to buy in low and sell in high than just talk. There are some traders use trading signal to know these points but there are also professional trader can be able to analyze the price chart so they can be able to know when they should buy and sell

Yes, I totally agree with you. Write or say much easier than done. Therefore, I wrote this article, so that newcomers have extracted at least some useful information for themselves.

[milewilda]

1. thinking the market CAP has meaning
2. not noticing the trade volume
3. not reading the white paper
4. investing in something that has no actual demand
5. selling when everyone else is selling

good comment,this is a typical errors we usually conducted,we dont need long story to tell whats the real meaning of errors.this one indicates it all,since this is the same faults we usually commit.i always fail because of not reading the white papers investing with no actual demands things that im particular now becae of many mistakes

This is just really the summation but having a full description or definition of such error isnt really bad at all since newbies that doesnt new everything would able to know on what are those things which is good but for us experienced one then we would really see these things are just basic dont need to be posted. Those errors is commonly committed among trading and should really be avoided at all cost.

[onemoretime8520]

my error was not selling on top even though I have known that the prices would go down but waited and hodl in the wrong time period, must learn when to sell and control your emotions .

[danherbias07]

Mistake number 2. That is the worse feeling a trader could feel. Regret comes afterwards as always.

Do not sell your coins just because you dont want to get the zero thing.
If you have really decided to purchase that certain coin then you made all the research until the last word they will give.
Their service should have been really good for you to trust then with your money.
That is what we should have been doing so that these scams will stop making shitcoins.

[Mahanton]

my error was not selling on top even though I have known that the prices would go down but waited and hodl in the wrong time period, must learn when to sell and control your emotions .

When you are aiming for long term then holding it up for long period of time will really be challenging and it will surely be a test of patience because you will see on how prices would move along the way.There are really times that temptations is strong when you do see price had pumped and selling out for profits is on your mind and there are times when you see dump you will sell to avoid further loses.These scenarios is very common and actions is really depending on your self control.

[goodGuyGreg]

Great article, very informative! have done some of those mistakes myself :/
Where were you when i just entered cryptos XD

[AlexZHankok]

Great article, very informative! have done some of those mistakes myself :/
Where were you when i just entered cryptos XD

I think when you just came into the crypto, you did not really think that you can make these mistakes. You simply invested and waited for profits, and when you suffered losses, then began to evaluate the market in more detail.

[AlexZHankok]

Guys, at your request, wrote a new topic about the basics of trading on the cryptomarkets https://bitcointalk.org/index.php?topic=3140089.msg32463692#msg32463692. Comments in new topic are welcome 

[Direwolve735]

1. Putting into the trade money that you can not afford to lose. For example, making deposits of all your savings at once or of credit.
2. Purchase of weakly capitalized, unstable crypto-currencies for most of the deposit.
3. Following excitement, emotions and unconfirmed information in decision-making. Develop in yourself a coolness and the ability to soberly analyze the situation.
4. Neglect of security issues. Always use two-factor account protection and a reliable computer with good antivirus to work on the exchange.
5. Lack of habit to follow the news and lack of attention to other important reasons for changing courses.

[BestSSS]

Excellent topic and the most important is very relevant! 95% of people act exactly as it is written in the first post. And only time and experience can make a trader from an ordinary person!

[hitrawal91]

There are many things which becomes Error while buying cryptocurrency if you do not take care of it personally.


1) Buy what goes up, and sell whats going down- Follow the Trend and don't bug the trend is the first trading mantra you should follow before buying the cryptocurrency.
2) Buy near the Support or Demand zone and sell near the Resistance or Supply Zone.
3) Plan your trades and Trade the plan is the third mantra which tells us that we should plan each and every trade with Discipline.
4) Follow the Strict Stop loss no matter how much big trader and capital you have for your support. Even a single loss can wipe you out of the game
    forever if you did not follow the strict stop loss.
5) Control Your Emotions of Fear and Greed and do proper analysis before you take the trade and don't change the trade until you make profit or loss.Changing or exiting from your trades in between shows that you lack confidence and you are highly emotional trader which is not a good sign.



All these 5 points are the major points to be noted by every trader before buying any cryptocurrency for trading or investing. Have a good luck.

[AlexZHankok]

Great additions. All the tips are relevant at the moment. In more detail I will try to describe them in a new topic.

[AlexZHankok]

I hope cryptocurrency market in a near future show dynamics grow and this picture will be only caricature.

[bering]

those things indeed were true but in my view buying on the top and sell to the bottom price i think these two mistakes were dominate most of traders because they thought positive trend hasn't stopped and buy at high price is still good idea although risky but people looks don't care and still buying

[AlexZHankok]

those things indeed were true but in my view buying on the top and sell to the bottom price i think these two mistakes were dominate most of traders because they thought positive trend hasn't stopped and buy at high price is still good idea although risky but people looks don't care and still buying

There is such a section as the analytics. People must be able to use it. Many experts predicted a correction, many said that it would be deep. Therefore it is absolutely not clear why people buy coins at the top of the chart.

[cryptolet]

Failling to find a good community to learn from, not holding private keys, lack of patience, sending to the wrong crypto-wallet in an exchange, fear of missing out.

[wooiuy]

Sir, the essence of finance is the definition of risk. It depends on everyone's thinking. Errors are inevitable. The price increase is also difficult to control. We need rational judgment and search for a lot of information.

[rebrik7]

Nice article, thanks for author for his time.
All these rules will be useful for beginners in cryptocurrency trading and not just for them.
Obvious rules, but much people neglect it.

[aardvark15]

I also think that a common error is not doing research when investing in a cryptocurrency. I believe it is important to get information about the development team, the purpose for the project or the need it satisfies, and the plan for rolling it out to real use cases. All these things need to be clear before putting your money into this kind of high risk investment.

[Jombrangs]

There is no any erros in buying cryptocurrency because all coins are in the compliance of the law and gives a great income which helps them to because successful and financially stable.

[boy130]

Another big mistake is believing the hype. There's a lot of ICOs that have generated significant hype, simply because they paid for it. It is quite easy to buy advertising, buy reviews, buy telegram users, by opinions, buy advisors, but anything! Just because something appears to be hyped on the surface, doesn't necessarily mean it's the next big thing. There's a few trading exchanges that fall under this category, they claim trading will be better, with higher volume etc, and then they half-ass their launch and only trade coins nobody cares about.

[IrinaKaizer]

Very good and useful tips, who has not yet got into such a situation-I strongly recommend to read again and get to the bottom of it.
Very often, unfortunately, it turns out so that we are given very sensible recommendations, but we do not adhere to them and try to do it on our own, and only then - having lost money we understand that we were wrong.
This is a market, and here probably most people go through it. Until you feel

[dadanpradana]

send a token to Exchange that requires a minimum deposit, because if the force does not enter token drink then your token will depend on the middle of the road.

RAcoin I send it to IDCM Exchange, IDCM has 5000 RAcoin rules for deposit, I force 1750 on send and the results of my coin is not in IDCM and not in my wallet before it.  VERY  SAD !

[karim30]

Thank you for the article. It's really helpful. When investing in cryptocurrency I often make mistakes FOMO psychology or impatient to buy a coin for the best price.

[itscomplicated]

Mistake № 5. Purchase coins from scam projects.
This error is a consequence of the previous one. Greed has ruined us.
Very often I hear about over profits in Landing ICO, investing in InvestBox and so on. If the project offers more profit in the shortest possible time - think! Most likely you are offered to enter the financial pyramid and will be enriched by the miracle of the project written on a cheap Internet template.

This is very important, there are many who is trying to make scam project because there are many who is easy to trick.
don't enter to an investment directly, study it first, just like the saying "don't go to a war empty handed" equip yourself knowledge and
skill and you'll be successful.

[raider150shifter]

Mistake № 1. Buying on the top (loss of profit syndrome).

in other words, don't get FOMOd. specially if the coin recently pumped, except if there's
a certain partenership, etc. that could base why the coin pumped. analyze carefully the chart.
partner TA with FA.

[RasicaOla12]

5 errors for us or happen when we trade cryptocurrency transactions that is
We often forget password wallet
We often hit the wrong address wallet
Do not enter the correct email address
money or error...

[capn]

The first one point is really matters for me, but I'm concerned about my limited ability to consider when it is the perfect time to sell or buy cryptocurrencies, you can never know when is the peak or the bottom.

[swetka]

The first one point is really matters for me, but I'm concerned about my limited ability to consider when it is the perfect time to sell or buy cryptocurrencies, you can never know when is the peak or the bottom.

in fact, many traders are guided by the average price, which was called during the ico of the company. The fact is that this is the line from which they are repelled and at the same time take into account the prospects of this project.

[worldofcoins]

Mistake № 1. Buying on the top (loss of profit syndrome).

in other words, don't get FOMOd. specially if the coin recently pumped, except if there's
a certain partenership, etc. that could base why the coin pumped. analyze carefully the chart.
partner TA with FA.

I think there's a large proportion of people falling in for this as they feel it will continue going  up and then it will make it much harder for them to buy the coin which sometimes can happen but I haven't yet seen a situation when the price didn't drop. So its something to really consider.

[Virtual miner]

Yes these are the most common errors or mistakes people make when buying cryptocurrencies. I would like to add one more important mistake which I think many people make. The investors, especially the newbie always look out for the crashed coins, expecting that they will rise to great heights. But it is not important that everything that goes down always comes up again if it has some value and adds up utility to the people.

[Cryptodiscuss]

All of these errors could be avoided if people just do their own research! If you dont know nothing about some coin and you watch its market cap, volume, is it on top or bottom... You will most probably hit some scam projects or pump and dump shitcoins! Just DYOR and when you are sure in some project, buy that coin, hold, and bears cant hurt you!

[napi]

yes you are right I really agree with what you mentioned this could be one of the references for new traders to be more careful when wanting to buy coin, such information is very useful and very useful.

[Daniel9140]

This is definitely a detailed explanation of what we experience in this market. These are commonly experienced errors we see in trading . we must know these errors and find a way to manage our risks and trades so as to be successful in this field

[ngocdhbk2]

5 errors when buying electronic money
1) Buy coin by emotion without considering the market
2) Put money into a coin
3) When the market price jumps up to buy
4) When the market price decreases to sale off because loss of capital
5) No experience in trading

[lushlife]

Mistake № 2. Sale of coins on the bottom (fear of losing everything).

This is the concrete example why we need to control our emotions in trading,
be patient, wait for the market to recover.

[Kunlejoe0]

Experience has taught me that keeping tab on what works for you is the best strategy, you could practise all the tips from the pro all you want and you have will still end up losing. Find your own method and stick with it.

[Huy Mai]

Wow, I love these errors because they are what we are experiencing in cryptocurrency market. You are true, and we should learn to avoid them. I think the best way is learning. We have to study many aspects of this market (TA, risk management, news, ...) Good luck

[Nayborksta]

Everyone who comes into the crypto business makes almost the same mistakes because of his inexperience, patterned thinking and, panicking under the influence of the crowd. If discard all illusions about our own "EGO", we are all imperfect people and prone to make mistakes. The financial market likes such amateurs and absorbs them with guts, because it is the only one which is always right and remains in a huge plus. And the question is - how to deal with it? It's quite simple – rule out these mistakes and you will defeat a crowd of losers and climb to the top of financial success.

Mistake № 1. Buying on the top (loss of profit syndrome).
A huge number of people enter the market at that moment when it's time to get out of it, regardless of the scale in which they trade. If the coin has recently shown X5-X10, it makes sense to look the other way, to look for a fresh product - coins that have successfully completed the ICO, have collected HardCap, but have not yet received their Xs. Of course, in each case there is still a chance for profit from further coin growth, but the probability of a decline in this moment is usually very high. Eventually, an inexperienced investor sees how the pump of the coin ends and he suffers losses of 100%. As a rule, any growth price is accompanied by an increasing volume and it is fraught - if there are buyers, then there must be seller. As a consequence, the increasing volume in the growing market may be a sign of the top achievement, as volume is a leading indicator for assessing future price development. People themselves generate volumes at a peak - see how the price increases, experience a "loss of profit syndrome" and soon receive losses.
 
To avoid this situation, the following rules should be adhered to:

1. Never buy when volume increases if the price is at the top of the market and there are no valid reasons for further price rise, and instead an artificial pumping of the price occurs.
2. You can buy in a growing market, but only if there is a break through the resistance level (maybe for someone it's a new word, but it's better to learn the basics of trading).
3. Always remember, there are 2 sell/buy glasses on the stock exchange, which means that against your deal for a purchase is a sale, where an experienced player comes out of a long position to re-buy at the bottom.
https://s14.postimg.org/btgthtzs1/2018-01-30_14.20.05.png

Mistake № 2. Sale of coins on the bottom (fear of losing everything).
No less number of investors falls into this situation. Surprisingly, this is a mirror image of the "Buying on the top" scenario, the same high volume combined with the heavily falling prices. Only in this situation we already experience not the "lost profit syndrome", but "the fear of losing everything". Negative news, panic on the forums and big red candles. Typically, this situation on the market has a pointed depression, such as the letter "V" (see screenshot). Selling in this situation, you will very soon face a price reversal and regret that you have succumbed to fear, trying to leave at least something of your investment.
How to avoid such an error?

Follow the same rules as before:
1. Never sell when volume increases if the price is at the bottom of the market, especially when all support levels are broken and there is no valid reasons for further price drop.
2. Sell in a declining market, supported by volume, only if you really see that there will be a break through the support level.
3. Always remember: on your sell, more experienced players want to be proficient; for your sell is an order where another investment fund or a large trader enters a long position to buy.
https://s14.postimg.org/mubymfcgx/2018-01-30_14.14.57.png

Mistake № 3. Growth leaders sale
It often happens that the investor, instead of long-term investments, is limited to short-term investments. Having received the coin's growth in 3-5 times, he sees a small drawdown after growth and makes the assumption that this is a signal for sale, the coin should fall. To his great disappointment, after some period of calm and movement in the lateral range, the price soon easily rushes to new heights. And what about trade on the correction, you ask? Gentlemen – this is an art that you still need to master, because you are starting a dangerous game against the trend. As a rule, the growth leaders do not go for a turn, but stop in a narrow corridor for a short respite and a further jump up. Of course, reversals of leaders happen, but most often this is due to SCAM of the project itself or serious security problems of the technology itself.

Use the following rules for this item:
1. Do not take short positions on the growth leaders, this is an investment for 6-12 months minimum.
2. If an outset emerged on the uptrend, you can count on a new breakthrough up (the longer the lateral trend lasts, the more chances to go higher up, breaking through the resistance level on the top).


Mistake № 4. Buying leaders who have recently sank to the bottom.
This error is a consequence of the newcomer's greed and rashness. Typically, the crypto business comes, hearing in the news of super profits, for example, about how Bitcoin did 18000% for a paltry 5 years. Looking at the Bitcoin, Etherium, Verge graph, the newcomer looks and imagines that he now had if he bought Bitcoin for $1000 in 2010-2011 or Etherium for $2, and even just investing in Verge $100, now he could drive on a steep wheelbarrow. In such moments, as a rule, we would like to think that the price always comes back and it is necessary to find a coin with a drawdown of 99%, of the latter, it is a sensational BitConnect project. I will not write about it, this coin refers to 5-th error. (This paragraph does not apply to the situation with Bitcoin in 2013-2014, when there was a hard correction).

Here is only one rule: do not take coins, the drawdown for which was more than 70%. Any technology (project) has its beginning and end, and during the rapid development of ICO (other more advanced technologies, projects) it is foolish to expect a quick recovery of the scam position of the project that has lost the key staff of the development team or key investors. The latter, most likely, at this time invest their funds in Etherium 4.01.


Mistake № 5. Purchase coins from scam projects.
This error is a consequence of the previous one. Greed has ruined us.
Very often I hear about over profits in Landing ICO, investing in InvestBox and so on. If the project offers more profit in the shortest possible time - think! Most likely you are offered to enter the financial pyramid and will be enriched by the miracle of the project written on a cheap Internet template. Yes, you can quickly make money here, but you can lose everything quickly. Therefore, these projects do not suit us, we are investors and traders, not roulette players.

In this situation, observe the following rules:
- Do not buy unknown coins, which are not available on such authoritative resources as CoinMarketCap, Investing.com
- Do not get involved in projects that offer you an income of 10-20% per day, most likely it's a banal pyramid. If you went into it, you can never leave.
- Watch coins on CoinMarketCap, it is desirable that their daily volume was more than 1 million, the total capitalization above 60 million and they traded on leading exchanges such as Bittrex, Binance. As a rule, such coins than are backed up and the chance that this scam-project is not great.


I want to add to everything that I'm saying above: the market of crypto-currencies is still young, the total capitalization is negligible, 2% of the entire population is aware of mining and blockchain, so there is still time for investments and making money.

Good luck and profit to all and thanks for your +Merit.

Link to my original post in Russian https://bitcointalk.org/index.php?topic=2846459.msg29198113#msg29198113

Thanks for those tips, they are really helpful. Especially for the newbies like me.

[WiseFoxxy]

Rules #1 and #1 sound like common sense but you'll be surprised to find yourself making those mistakes without thinking about it. It's part of a human instinct to want to join into the trend, even if there are clear signals that it's not the best time. We'll come late for the party with a bottle of vodka when everyone else is putting on their shoes and it won't faze us.

Check yourself every time you make a trade. Ask "is this rational?"

[r.black]

The topic is very well disassembled. But you can make a shorter summary. The main reason for the poor entry into the transaction is the orientation toward history and the expectation of a repetition of past movements and figures. Also, people are often mistaken because of the orientation to public opinion, the media talk, as well as the opinions of various "experts." Be smarter, do not let yourself be part of the simplest market manipulation

[Gadhoh]

On point. Though I have learned some of this from my past trading experiences which was hard. If only this post comes before I've jumped into trading  . Well done sir. Though this one deserves merit, I got nothing to share. Again thank you and would follow you for more of your posts like this one.

Because your emotions will be at their peak. When you make a great trade, you feel like a genius. The joy of making a bundle of money out of the blue coupled with the fact that it manifests from your own strategy generates a level of dangerous trust and excitement that makes you make some really dumb choices if left alone.

[Saidmod]

On point. Though I have learned some of this from my past trading experiences which was hard. If only this post comes before I've jumped into trading  . Well done sir. Though this one deserves merit, I got nothing to share. Again thank you and would follow you for more of your posts like this one.

Because your emotions will be at their peak. When you make a great trade, you feel like a genius. The joy of making a bundle of money out of the blue coupled with the fact that it manifests from your own strategy generates a level of dangerous trust and excitement that makes you make some really dumb choices if left alone.

Emotions is avery big part of your activity in what you think and felt may result a good or unwanted decision making. Patience is one of errors because of panic or eagerly to buy and that's me i admit I'm that kind of person before and now im learning on it once i saw the price gone up i will wait for its dump before i enter.

[GawirZZ]

1. You only buy without knowing the potential of the coin.
2. buy when prices are rising
3. buy in the wrong market
4. do not see any other coins
5. impatient when turrun but can go down again.

[TheNotoriouss]

Great thoughts! Thank for sharing! Will you invest this summer, guys? I prefer Kelvin Blockchain ICO, this is powerful stuff

[danherbias07]

Mistake № 2. Sale of coins on the bottom (fear of losing everything).

This is the concrete example why we need to control our emotions in trading,
be patient, wait for the market to recover.

But that cannot be done easily if you are in front of a landslide of prices. Portfolio going down!! Must do something!. That is how it feels for me.

Experience has taught me that keeping tab on what works for you is the best strategy, you could practise all the tips from the pro all you want and you have will still end up losing. Find your own method and stick with it.

Yes. Learned that lesson before. If you forget on what number did you sell then it will be a waste. It is not just USD that you should be thinking about but also the trade in bitcoin amount or ethereum amount.

There might be a good score in USD but exchanged on ETH you are still at loss. We have to be really careful with that.

[richardsNY]

Experience has taught me that keeping tab on what works for you is the best strategy, you could practise all the tips from the pro all you want and you have will still end up losing. Find your own method and stick with it.

Just like there aren't any "pro methods" there aren't any custom methods either. People need to understand that they are far more likely to lose than to gain anything here. In case people do actually gain something it's more related to luck rather than any research. I personally always wait for the market to become obviously overbought or oversold in order to act, which thus far has been a great indicator. It still doesn't mean it will work every time, but at least the odds of being right are higher, especially when you can apply buy the rumor sell the news, which is what trading is a about.

[Daniel9140]

I must say that, this article has been helpful to me and I this would be better off for the newbies coming into the cryptocurrency space as they do not know what they are doing and they need to learn the basics and Also follow these rules to be able to minimize their risk

[Alfiehob]

yes you are right I really agree with what you mentioned this could be one of the references for new traders to be more careful when wanting to buy coin, such information is very useful and very useful.

Adding into this, I prefer to learn as newbie. I must learn what is new for me. When I do know that people aren’t making such good results when they encounter with any unforeseen situation, I should be moving through smoothly. This would just be happening when you think I am confident about my learning process and the information I have just learnt.

[lbaneajr]

Everyone who comes into the crypto business makes almost the same mistakes because of his inexperience, patterned thinking and, panicking under the influence of the crowd. If discard all illusions about our own "EGO", we are all imperfect people and prone to make mistakes. The financial market likes such amateurs and absorbs them with guts, because it is the only one which is always right and remains in a huge plus. And the question is - how to deal with it? It's quite simple – rule out these mistakes and you will defeat a crowd of losers and climb to the top of financial success.

Mistake № 1. Buying on the top (loss of profit syndrome).
A huge number of people enter the market at that moment when it's time to get out of it, regardless of the scale in which they trade. If the coin has recently shown X5-X10, it makes sense to look the other way, to look for a fresh product - coins that have successfully completed the ICO, have collected HardCap, but have not yet received their Xs. Of course, in each case there is still a chance for profit from further coin growth, but the probability of a decline in this moment is usually very high. Eventually, an inexperienced investor sees how the pump of the coin ends and he suffers losses of 100%. As a rule, any growth price is accompanied by an increasing volume and it is fraught - if there are buyers, then there must be seller. As a consequence, the increasing volume in the growing market may be a sign of the top achievement, as volume is a leading indicator for assessing future price development. People themselves generate volumes at a peak - see how the price increases, experience a "loss of profit syndrome" and soon receive losses.
 
To avoid this situation, the following rules should be adhered to:

1. Never buy when volume increases if the price is at the top of the market and there are no valid reasons for further price rise, and instead an artificial pumping of the price occurs.
2. You can buy in a growing market, but only if there is a break through the resistance level (maybe for someone it's a new word, but it's better to learn the basics of trading).
3. Always remember, there are 2 sell/buy glasses on the stock exchange, which means that against your deal for a purchase is a sale, where an experienced player comes out of a long position to re-buy at the bottom.


Mistake № 2. Sale of coins on the bottom (fear of losing everything).
No less number of investors falls into this situation. Surprisingly, this is a mirror image of the "Buying on the top" scenario, the same high volume combined with the heavily falling prices. Only in this situation we already experience not the "lost profit syndrome", but "the fear of losing everything". Negative news, panic on the forums and big red candles. Typically, this situation on the market has a pointed depression, such as the letter "V" (see screenshot). Selling in this situation, you will very soon face a price reversal and regret that you have succumbed to fear, trying to leave at least something of your investment.
How to avoid such an error?

Follow the same rules as before:
1. Never sell when volume increases if the price is at the bottom of the market, especially when all support levels are broken and there is no valid reasons for further price drop.
2. Sell in a declining market, supported by volume, only if you really see that there will be a break through the support level.
3. Always remember: on your sell, more experienced players want to be proficient; for your sell is an order where another investment fund or a large trader enters a long position to buy.


Mistake № 3. Growth leaders sale
It often happens that the investor, instead of long-term investments, is limited to short-term investments. Having received the coin's growth in 3-5 times, he sees a small drawdown after growth and makes the assumption that this is a signal for sale, the coin should fall. To his great disappointment, after some period of calm and movement in the lateral range, the price soon easily rushes to new heights. And what about trade on the correction, you ask? Gentlemen – this is an art that you still need to master, because you are starting a dangerous game against the trend. As a rule, the growth leaders do not go for a turn, but stop in a narrow corridor for a short respite and a further jump up. Of course, reversals of leaders happen, but most often this is due to SCAM of the project itself or serious security problems of the technology itself.

Use the following rules for this item:
1. Do not take short positions on the growth leaders, this is an investment for 6-12 months minimum.
2. If an outset emerged on the uptrend, you can count on a new breakthrough up (the longer the lateral trend lasts, the more chances to go higher up, breaking through the resistance level on the top).


Mistake № 4. Buying leaders who have recently sank to the bottom.
This error is a consequence of the newcomer's greed and rashness. Typically, the crypto business comes, hearing in the news of super profits, for example, about how Bitcoin did 18000% for a paltry 5 years. Looking at the Bitcoin, Etherium, Verge graph, the newcomer looks and imagines that he now had if he bought Bitcoin for $1000 in 2010-2011 or Etherium for $2, and even just investing in Verge $100, now he could drive on a steep wheelbarrow. In such moments, as a rule, we would like to think that the price always comes back and it is necessary to find a coin with a drawdown of 99%, of the latter, it is a sensational BitConnect project. I will not write about it, this coin refers to 5-th error. (This paragraph does not apply to the situation with Bitcoin in 2013-2014, when there was a hard correction).

Here is only one rule: do not take coins, the drawdown for which was more than 70%. Any technology (project) has its beginning and end, and during the rapid development of ICO (other more advanced technologies, projects) it is foolish to expect a quick recovery of the scam position of the project that has lost the key staff of the development team or key investors. The latter, most likely, at this time invest their funds in Etherium 4.01.


Mistake № 5. Purchase coins from scam projects.
This error is a consequence of the previous one. Greed has ruined us.
Very often I hear about over profits in Landing ICO, investing in InvestBox and so on. If the project offers more profit in the shortest possible time - think! Most likely you are offered to enter the financial pyramid and will be enriched by the miracle of the project written on a cheap Internet template. Yes, you can quickly make money here, but you can lose everything quickly. Therefore, these projects do not suit us, we are investors and traders, not roulette players.

In this situation, observe the following rules:
- Do not buy unknown coins, which are not available on such authoritative resources as CoinMarketCap, Investing.com
- Do not get involved in projects that offer you an income of 10-20% per day, most likely it's a banal pyramid. If you went into it, you can never leave.
- Watch coins on CoinMarketCap, it is desirable that their daily volume was more than 1 million, the total capitalization above 60 million and they traded on leading exchanges such as Bittrex, Binance. As a rule, such coins than are backed up and the chance that this scam-project is not great.


I want to add to everything that I'm saying above: the market of crypto-currencies is still young, the total capitalization is negligible, 2% of the entire population is aware of mining and blockchain, so there is still time for investments and making money.

Good luck and profit to all and thanks for your +Merit.

Link to my original post in Russian https://bitcointalk.org/index.php?topic=2846459.msg29198113#msg29198113

Great read, I've made major mistakes in the past. Trading will always be a learning experience, and the education does not stop. It's a constant learning, especially if you are new to the market. I always stick with the basics, buy low and sell high. It really pays to study technical analysis. It is difficult at first, especially if you don't have a mentor. Like in my case, I just study thru books and youtube videos. But I am still learning.

[Kotone]

very nice post. If you think it very carefully and study those specific mistakes, it will only boil down to two: Emotions and Ego. That's basically the 2 main psyche of human that separate the female and male mindset.

[cryptobull3]

I think the main reason of loss is fear of losing , We are more afraid to lose than be eager to win , fear is a stronger feeling than hope , we usually pay more money to heal our disease than paying to prevention.

[B.]

buying ico coins and ending up in a scam is the most fatal and painful, because some successful ico coins are also vulnerable to falling prices and most investors immediately think of selling them before prices drop too much.

Coin trading without basic analysis also has a bad impact and I'm sure all traders have faced the same thing because they only rely on instinct and hype.

[hermankoles]

be a smart investor when on the market because all the technical analysis and fubdam provisions can be damaged by the trends that occur, but we must also learn to recognize trends because this is important for the introduction of your indicators to determine buy or sell on a particular target. happy trading

[deppil]

1. You only buy without knowing the potential of the coin.
2. buy when prices are rising
3. buy in the wrong market
4. do not see any other coins
5. impatient when turrun but can go down again.

most newbie traders too much follow the trend. when the price rises they buy because they think they will profit. but instead they buy at the price at the top. that's not a good idea. because the price is very vulnerable to drop due to correction. they panic when prices start to decline

[BigBos]

this is certainly true, and numbers 2 and 5 have been felt. well, it can't be avoided, when a person is really panicked about the price, and when he sees a project that is quite good, it ends in a scam.

[nydiacaskey01]

OP posted a good guide that can help newbies in trading to avoid committing the common mistakes in trading. There are other post's on this thread that are also helpful like the one in the first page that says "PANIC-BASED DECISIONS". This is the most common mistake, when you trade leave your emotions at home or in another room. One of the worst enemy of traders are their emotions.

[noormcs5]

1. You only buy without knowing the potential of the coin.
2. buy when prices are rising
3. buy in the wrong market
4. do not see any other coins
5. impatient when turrun but can go down again.

Most people buy in the Fomo when the price is already so high. So when they buy the coins, the price started to go down and they complain. Better to study the market, see the last few months price of the coins before you take a decision to buy.

[d1ceplayer]

Some of the people that makes the No. 1 mistakes are people who don’t believe in cryptocurrency, they think it can end at any time, but when they see the price going up they will all start rushing in and buying so they don’t lose the profit.

Times like this when the price is low is the best for buying cryptocurrency, you buy them and you keep them and wait for when they will rise again and you make profit. You simple take the risk.

[iv4n]

1. You only buy without knowing the potential of the coin.
2. buy when prices are rising
3. buy in the wrong market
4. do not see any other coins
5. impatient when turrun but can go down again.

Most people buy in the Fomo when the price is already so high. So when they buy the coins, the price started to go down and they complain. Better to study the market, see the last few months price of the coins before you take a decision to buy.

Most people sell when they feel panic everywhere around, most people never learn. Newcomers are fresh blood, it's something unique for every market. How to study market that fluctuate so much, you either believe in it's future or you don't. Only in that way you buy at bottom or close to bottom and wait for price rise, only if you are aware of the market nature you sell top or close to top and wait drop, it's a circle, magical one, you are waiting for new bottom and new round of buying and selling.
Main error is when people invest just money and wish profit in days or weeks, it's happen but it's more gambling than trading. In the beginning early adopters didn't expect all this, for god sake someone bought pizza for 10k bitcoins, they were here for technology and now they have money, it came for them, people should focus on promoting crytpo, spending crytpo and price rise will come.

[wuvdoll]

Some of the people that makes the No. 1 mistakes are people who don’t believe in cryptocurrency, they think it can end at any time, but when they see the price going up they will all start rushing in and buying so they don’t lose the profit.

Times like this when the price is low is the best for buying cryptocurrency, you buy them and you keep them and wait for when they will rise again and you make profit. You simple take the risk.

Not believing into cryptocurrency might turn a life time mistake, fortunately I got chances to rectify my mistake as I was doing this number one mistake. I would have got chances to buy bitcoin by the year of 2010 or 2011 but I started believing only in 2013 after seeing the prices were hitting $1000 levels. I still believe I have done a lifetime mistake of not taking enough time to go for analyzing about the features and future of bitcoin by 2010 even I have heard about it by that time.

A common mistake I do repeat with trading is, getting excited about a pump and buying that particular coin without going for proper researching and then regretting about buying. When I was active with yobit.net, I have done many times this mistake after that I started preventing myself from checking who got biggest gain for a day.

[rebrik7]

Some of the people that makes the No. 1 mistakes are people who don’t believe in cryptocurrency, they think it can end at any time, but when they see the price going up they will all start rushing in and buying so they don’t lose the profit.

Times like this when the price is low is the best for buying cryptocurrency, you buy them and you keep them and wait for when they will rise again and you make profit. You simple take the risk.

Not believing into cryptocurrency might turn a life time mistake, fortunately I got chances to rectify my mistake as I was doing this number one mistake. I would have got chances to buy bitcoin by the year of 2010 or 2011 but I started believing only in 2013 after seeing the prices were hitting $1000 levels. I still believe I have done a lifetime mistake of not taking enough time to go for analyzing about the features and future of bitcoin by 2010 even I have heard about it by that time.

A common mistake I do repeat with trading is, getting excited about a pump and buying that particular coin without going for proper researching and then regretting about buying. When I was active with yobit.net, I have done many times this mistake after that I started preventing myself from checking who got biggest gain for a day.

Oh, man! I really understand you! First time I heard about Bitcoin between 2011-2012 from one my friend, he was a software developer. He told me about blockchain technology, mining and other things. I said: yeah, bro, this is very interesting. But what is the real benefit to us from all this? He thought for a while and answered: - Really, I don't exactly know, now. But I feel that this will be something big in a few years.
How right he was then.

[noxezzhd]

Here are the Top 7 mistakes that I have seen people make over the last years. If you don’t make these mistakes you are already better than 99% of all crypto traders
Being emotional.
Not buying low and selling high.
Making all or nothing buys.
Putting all of their eggs in 1 basket.
Invest more that they can afford to lose.
I am sure after reading this article you will start to try to avoid such mistakes.

[PuertoLibre]

Here are the Top 7 mistakes that I have seen people make over the last years. If you don’t make these mistakes you are already better than 99% of all crypto traders
Being emotional.
Not buying low and selling high.
Making all or nothing buys.
Putting all of their eggs in 1 basket.
Invest more that they can afford to lose.
I am sure after reading this article you will start to try to avoid such mistakes.

Experience is sum of all mistakes.Well explained but...
1) Emotions are necessary no matter how it affects to trading decisions.
2) Who defines low and high? What if price come back to test "low" after 5 fake breakout?
3) I want whatever i can get like putting all to red in casino
4) Same rule applies to here but putting money that feeds family is not ok.

[AlexZHankok]

Here are the Top 7 mistakes that I have seen people make over the last years. If you don’t make these mistakes you are already better than 99% of all crypto traders
Being emotional.
Not buying low and selling high.
Making all or nothing buys.
Putting all of their eggs in 1 basket.
Invest more that they can afford to lose.
I am sure after reading this article you will start to try to avoid such mistakes.

Experience is sum of all mistakes.Well explained but...
1) Emotions are necessary no matter how it affects to trading decisions.
2) Who defines low and high? What if price come back to test "low" after 5 fake breakout?
3) I want whatever i can get like putting all to red in casino
4) Same rule applies to here but putting money that feeds family is not ok.

Emotion control is the main thing every trader should learn. This is the key to success! As well as money management. If there is no understanding of these fundamentals then remains one road in the casino.
And the answer to the question of where to buy higher or lower is won't be found. No one can know exactly the top and bottom points for the purchase.

[playboy654]

Here are the Top 7 mistakes that I have seen people make over the last years. If you don’t make these mistakes you are already better than 99% of all crypto traders
Being emotional.
Not buying low and selling high.
Making all or nothing buys.
Putting all of their eggs in 1 basket.
Invest more that they can afford to lose.
I am sure after reading this article you will start to try to avoid such mistakes.

Experience is sum of all mistakes.Well explained but...
1) Emotions are necessary no matter how it affects to trading decisions.
2) Who defines low and high? What if price come back to test "low" after 5 fake breakout?
3) I want whatever i can get like putting all to red in casino
4) Same rule applies to here but putting money that feeds family is not ok.

Emotion control is the main thing every trader should learn. This is the key to success! As well as money management. If there is no understanding of these fundamentals then remains one road in the casino.
And the answer to the question of where to buy higher or lower is won't be found. No one can know exactly the top and bottom points for the purchase.

What I'm thinking is don't make telling about there's only because it is a common thing that we have to regret every time so we can make the thinking of good things to be trade for many times if you're thinking positively that you are the most profitable person.

[rhomzkie26]

Perhaps the errors when buying crypto currency are such as follows:

1. Don't just easily get attract to buy token in every ico project.
2. Avoid buying shitcoins that has no volume in volume in the market.
3. Never listen to any FUD news here in the forum about the coins they are announcing it
    because they are just hyping anyone here to buy their token.
4. Never join in any PUMP and DUMP group here in the forum or in telegram
5. Don't follow your emotion always, just observe it first before anything else.

[Victorycoin]

All of your suggestions are enough good to follow for trading. But there might be another reason called emotion. We should not make any trade by emotion we should make a trade after appropriate research.