The post 13 Worse Trading Mistakes Crypto Beginners Make & How to Avoid
“Crypto market does not forgive even an honest mistake.”
If you remember this mantra, it will help you not only understand these crypto trading mistakes; you would avoid the blunders like other beginners.
Before we dwell deep into this topic, there is one more thing you should know:
If you make a lot of mistakes in a short span of time (unaware trading), you might never get back to crypto trading again. Fortune has been made in crypto trading and investing, and fortune has been lost.
Those who see this as a mathematical and mindset game, make the fortune, and those who see this as other ways, end up losing their hard-earned money.
Some of the richest people in the world are hedge fund managers (traders), and they got there by following trading strategies and minimizing their losses.
The easiest way to minimize your losses is by learning crypto trading as a system and learning from mistakes.
Do remember, “Learning from your mistakes is smartness, and learning from other mistakes is wisdom.”
trading mistakes
Now, this is your chance to become wiser and smarter at the same time.
Why should you listen to me?
Well, I started crypto trading almost two years back, and since then I have been slowly, patiently practising all the wisdom my mentor shared with me. I have been using these strategies, and skills to earn about $30000 in the past few months.
Here are my results:
Even though above numbers look fantastic, I’m yet many years away from being a pro trader. One thing you should know, I also made significant losses in my initial days which was heart wrenching, and rather than giving up, I started learning more, then actively trading.
I moved to paper trading, started with a smaller amount, and the last 2 years of regularity, and following best practices, helped me to get better. Now, I feel confident to share some of my learnings, and hence this guide on beginners trading mistakes.
This guide will help you learn those blunders and mistakes committed by many before you, that made them never see the trading terminal. All of the tips are based out of my experience, and collective wisdom of countless traders before me.
Now, if you are serious about creating wealth for your future, you should avoid these trading mistakes like the Coronavirus. I have also suggested tips to help you understand how you could perfect it.
Moving on…
Crypto trading mistakes New Traders are Prone to Make:
1. Starting with real money before paper trading:
Trading is a skill, just like any other skill , it takes countless hours of practice and patience to master it .
It has ground rules, and one of them is using paper trading before you put the real money. This part is boring for many, but it is perhaps the most quintessential aspect of trading crypto. A lot of trading beginners who don’t mind losing money (gambler mindset), ends up taking real money trade, before honing their skill.
What you need to keep in mind is, the crypto market is not going anywhere, and even if you prepare yourself for two months (or 100 trade) with paper trading, you are not losing anything. So, better prep yourself for the big game with crypto paper trading, before you put in real money.
2. Not using stop loss (Risk management)
Stop losses are the holy grail of risk-management. Stop loss helps you to minimize the losses when your anticipated trade goes south. It does not matter how confident you are about a trade going right, not using a stop loss is the biggest egoistic mistake you could ever make.
Almost all the best crypto exchanges offer this feature to set a stop loss, and some of them also offer a trailing stop loss feature. I will cover about Stop loss and trailing stop loss in the days to come. For now, if you have never used stop loss before, or skip them in some of your trades, well start adding stop loss. Using stop-loss with every trade you take, would help you avoid the #1 mistake crypto traders make.
If you follow this single strategy, one day, you might treat me with a pizza.
Anyhoo, moving on to the next one…
3. Paying high brokerage fees:
Brokerage fees (high trading fees) can eat a significant portion of your trading profits. The key here is to use a broker (exchange) that offers low fees trading, and have high volume and liquidity.
This way, you will end up making more money from trading.
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