1. Excessive operation
This is a trend that affects all traders equally, but it is important to avoid falling into it. To trade in the market, we don't necessarily have to have open trades, observing and analyzing is also part of the process, and it's quite necessary not to take shots in the air, but rather to learn how to become a market sniper.
Don't feel that you are wasting your time if you are spending a large percentage of it to detail what is the movement that you should make, because in many occasions the account can grow, not necessarily because of the operations that you make, but because of the operations that you stop making. And always remember: It is better to stop winning than to lose!
2. Putting everything in the same bag
Most crypto traders know the risk of putting all their chips in red or black as if it were roulette. Regardless of how strong and confident the trader feels at the time about a move, there is always the possibility that he may be wrong. Putting all the trading capital into one position has often cost many traders capital to go down and fail. The size of a trade's entry position and the risk management of that position are two key components of any successful trader's trading plan.
Even the most heavily advertised currencies can suffer significant declines, while the market as a whole remains stable. Crypt coins are unpredictable and in a state of evolution, which means that no single coin (not even Bitcoin) is "guaranteed" to survive in the future.
Whether you're keeping cryptocurrencies or trading, you can't afford to put all your funds into one currency. Diversification and risk management is the key to a solid portfolio, and by finding good entries in various currencies, you'll increase your chances of making a profit
3. Lacking a plan of action
This is a perfect tactic to achieve a disastrous result. If the beginner trader does not have a defined plan, the losses will most likely come soon, I assure you! Because speculating in the financial markets without a definite plan is like jumping out of a plane without a parachute.
The organization of the beginner trader is one of the most important points to succeed in this business, in which the most intelligent, the most prepared, and the most organized, who also knows how to respect his work plan, does not survive. If you have clear for example, that if X variable passes, is an indication of sale, then millet, sell, do not put more mind to it!
If you have clear that if x variable passes is an indication of output, then leave dad, do not wait for more, is what it says its plan, what had pre-established from before entering, so to respect it. You can not give the field to the mind, because there is that enter the emotions ... if not rather in trying to be like robots, which work with a defined plan to do if it happens x thing, and not as a simple puppet of our mind, which makes us act from the emotions and make mistakes.
4. Getting up with the wrong food
Or in other words entering a losing position: Many traders have stubborn streaks and believe that their execution is correct even though the market is warning otherwise. These "brilliant" people think that by increasing their losing position, they will decrease the overall market price and make more profit when the market changes its behavior. However, most of the time the market doesn't go back in time and their positions end up in big losses. The losses are further magnified when they take positions to "average out" the losses.
Some traders cannot properly appreciate market trends, turning them like the effect of a rubber band, they stretch in a certain direction and then reverse their investment and take the opposite direction. The feeling of greed causes the trader to often cancel his order and take his profits in the expectation of making more money. This often results in the market trading in the opposite direction and makes a profitable trade a loser.
Be smart but overall take the chances that the market provides that require the less risk first, for instance, token creation at mintme.com can be an alternative to get you started with fewer risks and become a platform to train you while you also learn about how others do it. Is not such a bad deal, right?
Mary Schwartz