7 deadly sins of a cryptocurrency trader

A trader is a stock speculator who makes a profit not from the production of a certain kind of goods or services, but from direct trading. Traders buy cheaper and sell more expensive, or enter into contracts with each other to raise or lower the asset’s rate.

In other words, a trader is a dealer in certain financial instruments. In this case, we are talking about cryptocurrency trading.

Today, cryptocurrency trading is a professional activity that requires an accurate understanding of the work of cryptocurrency exchanges, their course and strategies for further promotion.

An experienced trader goes the hard way, becoming wiser and richer. You can only become a first-class trader if you are not afraid to make mistakes. We want to spread straws and tell you about the main mistakes of traders that you can avoid if you are well-versed.

Mistake Number One: Technical Analysis Leads Everything

Technical analysis is just a tool to help you reach your goal. It will help you make money on cryptocurrency, as it includes many methods that contribute to more accurate forecasts and calculations. The reason technical analysis is effective is its acceptance by the trading community. According to the expert, all market participants “read the same books” and use the same methods.

At the same time, do not forget that technical analysis can fail due to the influence of third-party, unpredictable factors. These include news, negative and positive statements from regulatory bodies.

You cannot rely only on technical analysis, you need to take into account other indicators, think logically and even take into account your own psychological state.

Mistake Number Two: It’s Too Complicated

There are many books and websites for learning about graphic models.

The question is often asked: “How about becoming a trader using the online self-study learning system?”

If you go this way, chances are high that you will simply become confused in the amount and amount of information. Our advice is to keep it simple. Find and understand basic patterns.

Take a course on elementary patterns and indicators, learn the basics, and figure out how to use them effectively.

Mistake Number Three: Imaginary Patterns

One of the most common mistakes novice traders make is to remember a few simple patterns and then look for them everywhere. And find them everywhere.
Sometimes you have to come to terms with the fact that there is simply no pattern and wait for the pattern to form.

The trader’s goal is to correctly predict the next price trend. It is realistic to predict, and not to adjust the facts to please your guess.

Mistake Number Four: Preferring Short-term Patterns Over The Long Term

Long-term patterns are much easier to trade than short-term ones. A short-lived pattern can easily turn out to be a mirage. But the long-term pattern that develops over weeks or months carries a lot of weight. You have to see what the coin is doing for a week, several weeks, a month, three months, a year. The more you step back, the more obvious the patterns become.

Build charts, study channels, find trends. When a coin has been trading in a channel for an extended period of time and suddenly breaks out of that channel up, down, or sideways, pay special attention. The game just changed. Give yourself a break and think about how to take advantage of these changes.

Mistake number five: Overtrading

This is a classic. Everyone makes this mistake.

Making money is great. But it’s worth finding a balance between the happiness of winning and the fear of failure.

Emotions spoil the trade. Therefore, it is so important to focus and stop looking for short-term patterns, especially if you are just starting out. Try to come in and out of the trade every few weeks or every month. These longer term steps are easier to see and use to your benefit.

Mistake Number Six: No Error

In one of the classic early 90s trading texts, Safety Margin, Seth Klarman lays out the ultimate guide for top-notch traders: Give yourself room for error.

The simplest pattern to look for in cryptocurrency trading is to buy when everyone is panicking and when the coin is skyrocketing. Trade and go. Because in both cases, the situation will change and you risk losing if you stay.

The possibility of making mistakes is given by the larger error. If the error per coin is between $ 50 and $ 100, then this is a bad error. The difference of $ 1,500 makes it possible to make money with less risk of loss.

Mistake number seven: Going all in

In order not to make this mistake and not lose a lot of money, it is worth remembering one simple thing — a little patience goes a long way.

When you have successfully invested in a coin and made good money on its growth, you start to think that you should have gone all-in from the beginning and made more money. This is the mistake. It can work once or twice, and then you will lose a large amount of money.

If you have a strategy and can stick with it long enough, you will start making good money. You will make predictions and see that the market will develop exactly as you thought. You just need to anticipate the general direction, and not try to thoroughly understand all the ups and downs, which is completely impossible.

Trading is a lesson in humility. Find your strengths and weaknesses and learn to use them. We hope you find our tips helpful.

Go to our website: https://jaguarcrypto.io/

Register in the bot and become a member of our project: https://t.me/JaguarCryptoBot?start=p_801964429

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POS-mining ZYX network (up to 21% per month) Referral is not debited from the partner! Trade: BITFOREX. https://tapid.pro/jaguarcryptochannel_en

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