5 mistakes every crypto trader should avoid

[JessicaVL]

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


Stop loss/take profit placement

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

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

Always avoid overtrading

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

Diversification

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

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

Putting too much money in too soon

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

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

FOMO

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

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

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

The key to trading crypto

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

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

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

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

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

[pooya87]

Diversification

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

diversification means that your portfolio should contain the following:
- stocks
- bonds
- precious metal
- real estate
- bitcoin

if your so called portfolio contains bitcoin, ether ripple,.... then you are NOT diversifying. what you are doing is increasing your investment risk while reducing your profitability dramatically.
and every "top trader" already knows this. only the beginners who fall for the pump and dumps think otherwise.

more here: https://bitcointalk.org/index.php?topic=5199926.0;all

[Darooghe]

I think over trading can be someone’s worst enemy. I believe back testing trades and finding significant resistance and support levels is everything in my opinion. Always wait for those signals to happen before rushing into a trade, don’t try to find and alternative trade plan just so you can keep trading. Find what works and stick to it, as boring as it may seem. also it is mistake to look at short term gains rather than long term fundamentals of the project. at the end of the day, prices will fluctuate but if the fundamentals and capacity to implement them are there then it should pay off. Nonetheless, never put more money than you're willing to lose.

[Sri rahayu]

This taste fomo is indeed very often felt by traders, when they see a surge in prices rise, they immediately panic buying, I personally have my own way to avoid that feeling. If i get a small profit, the easy thing is to leave the trade for a while, so as not to get caught up with that feeling, and wait until the correction time arrives.

[Henri Cartier]

I came across some other cryptocurrency trading mistakes that I will include here -

• Indicator Overload
• Trading Too Often
• Trading Against the Trend
• Using Stop Losses That Are Too Tight
• Avoid Pump and Dump Groups
• Test Your Strategy First
• Follow The News and Check Your Confidence
• Using Terrible Risk-to-Reward Ratios
• Trying to Make Absurd Amounts Of Profit
• Adding to Losing Positions

Read this article to know more about it and how to avoid these mistakes.

[Slow death]

I would like to know who are the people who created these tips and what were the maximum profits, the biggest losses they had and what capital they started. Why would I like to know these things? to see if these tips have produced good results for them. Talking is very simple, but doing is very difficult. People can say:

Don't put feelings when you trade.

But let's face it, we're dealing with money, who can be calm watching their money reduce? we all get worried when we lose money

[watergold]

This taste fomo is indeed very often felt by traders, when they see a surge in prices rise, they immediately panic buying, I personally have my own way to avoid that feeling. If i get a small profit, the easy thing is to leave the trade for a while, so as not to get caught up with that feeling, and wait until the correction time arrives.

That is the result of not controlling it, Fomo often happens and even makes a panic by making the wrong decision, but in trading with the surge we have to reach it well or analysis techniques I am sure will be the best when the price spike occurs.

[ajeef]

I would like to know who are the people who created these tips and what were the maximum profits, the biggest losses they had and what capital they started. Why would I like to know these things? to see if these tips have produced good results for them. Talking is very simple, but doing is very difficult. People can say:

Don't put feelings when you trade.

But let's face it, we're dealing with money, who can be calm watching their money reduce? we all get worried when we lose money

I think we don't need that details of the one who created this because those tips are usual thing in crypto and everyone would advice those things to the other people, and yeah you're right the teory is not the same when we trade of the field because the market is dynamic and our emotion can be controlled by the market and sometimes we will break the rule of trade that even we already know. So, those tips are not easy to implement but at least we know it.

[dark08]

I think over trading can be someone’s worst enemy. I believe back testing trades and finding significant resistance and support levels is everything in my opinion. Always wait for those signals to happen before rushing into a trade, don’t try to find and alternative trade plan just so you can keep trading. Find what works and stick to it, as boring as it may seem. also it is mistake to look at short term gains rather than long term fundamentals of the project. at the end of the day, prices will fluctuate but if the fundamentals and capacity to implement them are there then it should pay off. Nonetheless, never put more money than you're willing to lose.

I agree with this one over trading can be cause of greediness and because of that it can harm your trading strategy that can cause of losing your capital, the 5mistake that OP mentioned is also right that why we also need to study and learn the basic principles of trading before doing any action like stoploss/take profit.

[Baby Dragon]

It is the reason why they keep on experiencing losing their funds and assets than gaining and earning, a trader should examine every situation so they won't end up feeling remorse because of their decisions and actions. Sometimes traders made some mistakes and it's okay as long as you learn from it and you allow it to guide you so you can not do it again but there are some traders who keeps on risking their own money just because they feel that they will earn. They will risk a huge amount of money to trade without even thinking about the possible result of their decisions.

[acdc]

You posted a similar article on November 7, 2019, 09:55:20 AM
https://bitcointalk.org/index.php?topic=5199458.0
Posting a repetitive post is unnecessary and only wastes the resources of the forum.

[BitHodler]

I appreciate that people spread these tips since the intentions are good, but I have seen them pop up from time to time in forex forums as well, and that is a market trading for decades.

If people haven't learned anything from these tips throughout all the time traditional markets have been trading digitally, it's safe to say that people won't be going to improve by reading similad tips. I wish they did but that's not the case.

Outcome will always be that most people lose trading. If everyone was smart and educated enough, people would be making the same decisions and mistakes, which means that there wouldn't be a market.

[hugeblack]

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

Do you recommend using leverage with cryptocurrencies? Bitcoin? For newbies? are you serious?
Cryptocurrencies are highly volatile models, so using them as an investment can make profits without using leverage. Using it with Leverage is gambling.

For beginners: it is better to learn about cryptocurrencies using test coins, and for trading learn + using simulation.
Don't invest more than you can lose.

[TGD]

You posted a similar article on November 7, 2019, 09:55:20 AM
https://bitcointalk.org/index.php?topic=5199458.0
Posting a repetitive post is unnecessary and only wastes the resources of the forum.

Its clear that she just want to promote her youtube channel here to gain some views by doing this repetitive thread. I wonder if anyone in this forum will watch that video without payment. Most of the user here are used to have payment before they click or watch. LOL

[Taskford]

You posted a similar article on November 7, 2019, 09:55:20 AM
https://bitcointalk.org/index.php?topic=5199458.0
Posting a repetitive post is unnecessary and only wastes the resources of the forum.

Its clear that she just want to promote her youtube channel here to gain some views by doing this repetitive thread. I wonder if anyone in this forum will watch that video without payment. Most of the user here are used to have payment before they click or watch. LOL

Actually there's nothing wrong for that but aslong as he produced a valuable content that can help newbies to learn more from that mistake then provably that is ok but if he requires you to pay him up then that's another story and find this content as shady. But anyways let's get our heads up on suggestions since it has a valid points and those and other suggestion can be our guide so that we will not create the same mistake.

[Triffin]

This taste fomo is indeed very often felt by traders, when they see a surge in prices rise, they immediately panic buying, I personally have my own way to avoid that feeling. If i get a small profit, the easy thing is to leave the trade for a while, so as not to get caught up with that feeling, and wait until the correction time arrives.

When we plan our coin to be and believed in its potential to grow after awhile then don't believe in FOMo, it's OK to stop loss when the projects eeks to have no update but if its have an active team that keeps strategizing and the project is indeed useful then focus on the plan. Analyzed and be updated in our holdings

The working way to avoid all of FOMOs is to choose the right coin. If a person buys bitcoin, he wont have to think about all other worries. Coins that have been with us for long now and actually laid foundation of this market are indeed not trustworthy. But this does not mean he gets free from doing own research and learning. This will help him in making best usage of his digital asset.

[davinchi]

One very vital tool that I never joke with in trading is the stop loos and take profit tool, because as a serious cryptocurrency trader, the best way that we can really control our emotion and our greed level is when we are able to use this tools as controlling it humanly is really not an easy task as it involves the use of decision.

When it comes to decision taking, humans really have so much issue with that, so I make sure that any platform that I am using for my trades must be one that has these tolls install on their trading platform, and lastly, from your point, FOMO is a very terrible thing and we need to be careful the way at which we listen to people's opinion because one of the factor for FOMO is opinions of people.

[Murat]

There are also some strategy which should follow to a trader, I think at the first, Control your emotion during trading, emotion is the ultimate killer in order to ruin your successful trading, not don't follow your emotional signal, be technical and always follow the technical chart to identify the best way to male a good plan, secondly, Don't trade too much, it another wrong decision to make money by trading, always try to follow the update news which enhances your idea and it makes you confident for the further step. another important thing is that, don't pay heed to any gossiping group discussion, it may confuse your next step. so be careful.

[1Referee]

always try to follow the update news which enhances your idea and it makes you confident for the further step.

News is pretty worthless in my opinion. All the 'news' that matters is what the chart allows you to see, and from there you plan your next step forward.

If there is a spontaneous news event that does move the price, you then adapt to the change and adjust your positions. You don't have to continuously follow every news outlet to do so, the charts will be that indicator for you.

In general, news doesn't really affect the price at all; the longer term trend dictates the direction. At most news can accellerate a down/up trend, but only in the direction it was already moving towards. Good news doesn't have an impact on the price in a bear market and bad news not in a bull market. That's how it is.

[asyakashi]

all of that is about controlling emotions during trade.
it is not easy to get used to it, and I think this is a difficult part of trading.
but I am very happy to write some motivational / strategy messages so that my trading is safe.