Trading is one of the exciting parts yet risky when it comes to crypto as you have two things to consider; gain a profit or get a loss. However, many people especially the newbie traders are getting more loss instead of gaining a profit because of their decisions while they are trading.
Now, in this article, let me show you why these things are happening and why most of the newbie traders are losing their position and get more loss instead of a profit.
THINGS TO CONSIDER WHEN YOU ARE TRADING
Studying the basics
One of the common mistakes of the newbie trader is not learning the basics of trading, commonly, the common principle that we only know is Buy low, sell high. In my opinion, knowing that principle is not enough to have a successful trade.
It’s important if you will also understand and learn different terminologies used in trading such as the support and resistance and even different kind of the bullish and bearish patterns so you will have a guide on when you ae going to have an entry and set a perfect sell limit based on your analysis.
Always remember that basic is one of the most important things in different aspects and the foundation of a professional people.
These articles may help you to know the different terminologies when it comes to crypto and can help you in your trades.
Terminologies and phrases used in cryptocurrency written by Eybyoung
Lack of analysis
Having a lack of analyzation in the market can cause a bad trade. Learning the basic indicators are very helpful such as RSI, Bollinger Bands, MACD and different indicators that may help you in your trades.
This may help you in predicting the possible movement of the market where it will bounce and the possible breakout of the trend. Putting the support and resistance is one the great start of analyzing the market’s movement.
Trading indicators written by Eybyoung.
Copy trading
There’s a lot of Facebook groups, Discord channel, Telegram channel or groups that are giving their own analysis and signals where to buy or sell a coin and some people are copying the trades of these professional trades.
There’s nothing wrong in copying the trades of others but keep in mind that once their analysis was wrong, you don’t have a rights to blame them as they are just a guide and didn’t force you to buy or sell the specific coin.
However, in my opinion, copying trades is not a good move when you are trading, as what I have said, we should learn how to analyze the market by our own analysis.
Too lazy to know the projects
This is one of the biggest mistakes of people who wants to trade or hold a coin for the long term. When investing in crypto, you should know the projects of the coin that you are investing to know if it is very promising and will have a bullish move in the next coming days or months.
Trading is not only about buying or selling the coin, you also need to know the project of the specific coin that you want to buy. These articles may help you on the things that you need to consider when you are investing.
Types of token supply and how to analyze themwritten by @CryptoSorted
5 crypto investing mistakes that everyone should avoid written by @Kryptlook
Believing in the FUDs instead of the coin
A lot of people in crypto verse loves FUD and it is really annoying especially if they are saying anything against your coins. Well, some people are having a problem on this. When they bought a coin and read a FUD post, they are immediately selling their hold instead of believing to the coin.
Come to think of it, once the person spread a FUD, it can be his way to manipulate the market indirectly, there’s a chance that the price will go down (once the FUD spread) and the person who spread the FUD will have a chance to buy. Who knows that it is their way to manipulate the market, right? Hmm. What are your thoughts?
You don’t need to believe in FUD if you know the potential of the coin that you bought based on their projects and your analysis.
Skipping the basics and being greedy
This is a common mistake of the people who’s having a mistake in trading. Instead of starting in the basics such as spot trading, they are choosing to jump in a higher stage like leverage trading.
This thing is happening because of their greediness as they want to gain more profit but the things are getting worse because you are getting losses instead of profit because you didn’t know the basics and you are a greedy.
Things listed above are based on the author’s opinion, the objective is to learn and give an awareness to the new traders and not to change your perspective and opinions.