Typical Mistakes in Cryptosphere

Basically, we make mistakes based on emotional decisions. The sooner we get under control common psychological factors such as fear and greed, the easier it will be for us to achieve positive results in trading cryptocurrencies.

Wrong time for opening a position

Let's say, having spent those. analysis, we see strong resistance. In the hope of further growth, we begin to plan the purchase of one or another asset at the moment when the resistance line is exceeded. But against our desires, there is an unexpected jump in the rate, having overcome the resistance line, the price has significantly exceeded our expectations.

In such a situation, the main thing is not to succumb to emotions and not fall into the trap of the so-called missed opportunity syndrome. The trap when greed gets the best of us and despite the high risks, we make an unhealthy decision to enter into a position. This situation is common among novice "traders" who, under the influence of hype, buy cryptocurrencies and, as practice shows, this leads to losses.

Position amounts too large

And so, we made a deposit of $100, started trading, everything is going great, our strategy turned out to be correct and brought in $500. Against the backdrop of thoughts about our professionalism, we decide to "play big", because by investing 10 times more, instead of $500, we could earn as much as $5000.

Too risky positions due to the euphoria of success is also a typical mistake among newcomers to the market. We should never forget that it is impossible to always trade in the plus and even the sharks of the market periodically close positions in the minus. It is necessary to proceed from a long-term perspective, without risking large sums, since losing positions are an integral part of a trader's life

Trading without stop loss

The basis of success in the crypt has always been the miscalculation of risks and consistency. This is well known to many exchanges that provide a wide range of trading functionality that makes it much easier for traders to work on the market.

One of these tools is the "stop loss", which, oddly enough, is often neglected by most beginners. "Stop Loss" provides the ability to place a limit order at a price you specify, to buy or sell an asset, depending on your choice.

Lots of active indicators

We are all well aware of the incredible variety of auxiliary tools and even more different indicators offered by exchanges to help traders. But at the sight of all this choice, a beginner is usually faced with a choice problem. And as a rule, he chooses several instruments of support, resistance, Fibonacci charts and so on. But the question arises, is it necessary all at once?

First of all, it is highly doubtful whether a beginner will be able to appreciate all this at once, at its true worth. Secondly, such a variety of indicators is likely to create confusion and misleading. It is necessary to choose only what can really help in the implementation of the strategy.

Catch the "jump" at a minimum

In principle, everything is extremely simple and logical, buy on growth and sell at the beginning of the market fall. But in most cases, many are looking for a coin that has been falling over the past month in the hope that it will start growing rapidly after our choice. True, one should not forget that there are absolutely no guarantees for the growth of the coin to the desired heights, but on the contrary, embarrassment may occur and the coin will fall much below the entry mark. Therefore, always take the time to review the market and watch the news for analysis before choosing a position.

No activity log

It doesn't matter if you are a beginner or an experienced trader, it never hurts to analyze your past actions in order to realistically evaluate the result of your activities. Moreover, to analyze literally all actions, both successful and actions that caused losses.

It doesn't hurt anyone to keep a trading journal, which simply records all the actions. Having taken a screenshot or video before entering a trading position, write a description next to what exactly prompted you to start trading. And it doesn't matter, let it be a fundamental decision, technical analysis or based on an informational occasion, just take it and write down what exactly was the reason for making this or that decision. 

Also, upon closing the position, do the same, with a description of the reasons. In the future, this will serve as a good help for you, as it will teach you to fix your plan and, despite any emotional instability, will not confuse you.

You can track the rate of cryptocurrencies, trade and earn on the KUNA platform .

CoinShark is not responsible for the content, accuracy, quality, advertising, products, or any other content posted on the site. This article is for informational purposes, prepared on the basis of KUNA materials and information from open sources. Readers should do their own research and analysis before taking any action.

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