How to avoid basic mistakes in crypto trading?
By Yaroslav Krasko Updated November 11, 2022
Most beginners lose money because they don't follow simple rules.
In this article, we will look at the most common mistakes, you will learn how to avoid mistakes, stop losing and start earning steadily.
What mistakes are keeping you from making money in trading
Trading without a strategy
The first and most important point is the presence of a trading system. A trading strategy is a clearly formed set of rules and parameters, the implementation of which allows a trader to open a deal. A trader who uses a strategy knows what to do depending on the market situation. Successful trading is simply impossible without a profitable trading strategy!
Lack of knowledge and experience
Statistically, 95% of traders trade in the red, and only 5% of traders trade in the green. For some reason, most newcomers, at the beginning of their career, believe that they are better than most and that everything will work out for them. This is a big mistake. Trading is a highly competitive environment where the best win. We have to compete with such giants as Morgan Stanley and Microstrategy. It is impossible to start making money in trading without knowledge and experience.
Risk management, what is it?
Beginners become interested in the issue of risk control only after several merged deposits. But this is one of the biggest mistakes, before thinking how to make money faster, you should ask yourself how not to lose your money! The risk management system will help you in this matter.
Most traders trade intuitively. Sometimes they are really lucky. But only temporarily. After all, such market participants still lose all their money.
Trading is not a lottery, trading is following clearly established rules of trading strategy and risk management. Systematic use of these rules makes it possible to earn steadily and constantly increase your income.
Using large amounts
Beginners often think that it is impossible to earn with a small amount of money in the account. I will tell you a secret. If you can't increase $100, you can't do it with even $1,000,000.
Exaggerated expectations and the desire to make quick money only lead to loss of money. If it's so easy to make money, why do 95% lose? Quick money can be found only in lotteries or casinos. Trading is a systematic sequence of actions by which a trader gradually increases his account.
Eliminating such mistakes, in most cases, will already help to correct your condition. Below, we have prepared a clear roadmap that will help you achieve success in trading.