FIVE (5) THINGS TO AVOID IN CRYPTOCURRENCY TRADING
FEAR
Fear in it's small state is distructive and this has to basically do with the emotion state of traders in the crypto market.
I have heard someone talk about his awearness of the early stage of Bitcoin (BTC) around 2008 but his doubt and fear of losing his fear made him not to make purchase then and which ends up in regret.
In Cryptocurrency when you trade is either you Rejoice later or Regret later and when you decide not to trade you could as well end regretting.as the market meant end up pop up. On this basis is where the taking risk comes in. If you are not ready for risk then don't trade.
LACK OF ADEQUATE RESEARCH
When it's comes to trading or investment in general research is crucial and important, as it gives you a clear understanding of the market you are aiming at and also brings in your dask new market that you can enter.
Lack of research has kill alot of traders financially. I could remember my early stage of trading I enter market with highest gain because I think that is the safer coin to trade, not k knowing well that the coin is pumping doesn't means it's will continue in that direction. So before it's important to make adequate research before purchasing or investing in any market.
OVERTRADING
Most trader are capital push they lunch into different market at the same time with proper check and consideration.
Overtrading should be avoided when trading or investing in any market, you should have a set amount you want to invest or use for a particular and always try to monitor your trade.
IGNORING RISK MANAGEMENT
Hmmmm..... This has out many trader into trouble, ignoring risk management is important in crypto trade. The word crypto has its first three letter CRY, so if you don't want to CRY then you most not ignore managing your risk level.
Flashing back to my early stage of future trade I could remember opening market and ignoring to set my take profit and stop lost, going to bed and waking up I realize my market has liquidated with lost of quit some Dollars, it's was very painful then. I realize most trader feel they trust the move of a market and so therefore they ignore managing risk.
FOLLOWING THE CROWD
The crowd could be misleading in trade . Following the crowd has always been challenges of most people, you know what you want to know and you don't know what you don't or believe you can know, seat personally and check the information you get and then you will know the validity it.
There is definitely a psychological connection to cryptocurrency trading. You have raised 5 very good points. Acquiring these traits is mandatory to become a successful trader.
Thanks for reading through and comment
Crypto trading has its smiling part and the butter side too. It's not always a win win case. So one ought to be care and adhere to certain measures if you want to stay up in this.
Thanks for sharing your thoughts with us
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