How to Stop Losing Money in Crypto Trading
Crypto trading can be rewarding and frustrating at the same time. It is really easy to lose money in this world but hard to make it back. With that being said, why are you losing money with crypto trading? Crypto trading can be treated as an investment or a business wherein you need to approach it with respect and complete understanding. Today, we will be talking about mistakes and hope to spread awareness to new traders and people that are losing more than they should.
Seven Deadly Trading Mistakes
- Not knowing where you failed –Not knowing where the mistake was made is a common thing when it comes to new traders. Always have the presence ofin mind when you place to buy/sell orders and try to use exchange website features like order history to be able to track down your mistakes. In addition, to test your “theories” never go live and try to use test trading accounts to have better control.
- Buying cheap coins – One of the common mistakes that new traders experience is having the urge to buy cheap alt coins that “promise” to be better at what they do; thus increasing the cheap coins’ value within the next few months. It’s okay to invest in ICO’s if you know what you’re getting yourself in, but if you are just new to the game, stay away from it. Invest in crypto that has already proven their worth and work with that.
- Emotions – Never let your emotions get the best of you. This is something that most of the guides today always include when it comes to trading. The best traders know how to turn off their emotions and choose logical ways to earn.
- Price Bias – Do not ever assume. It doesn’t mean that it has gone up and down the level, it would do that for eternity, always use stop loss order to actively provide yourself with a safety net in case something goes wrong.
- Not letting go – Did you make an eternal vow with the coin you just bought? You do need to cut your losses when the time comes, better early than later.
- Random Buy/Sell – No use of historical analysis; always use data to your advantage. You also need to keep in mind that things that go down does not necessarily go up again.
- Putting all eggs in one basket – Never put your life savings into one coin that you “think” will skyrocket within the next couple of months because chances are that you are wrong! Never listen to marketing strategies that easily lure new traders into investing money in ICOs that do not have a solid backbone. If you’re new to trading, stay away from ICOs and never put all your eggs in one basket because if you lose that bet you lose it all.
Must Haves’ For Successful Traders
The first must have for a newbie in crypto trading is the striking ebook “Successful Crypto Trading for Beginners”, that definitely tells you how to stop losing money in a very precise way, while getting excellent tips how profitable trading works.
It’s an amazing compilation of all necessary knowledge about crypto trading a beginner needs in order to become a really profitable trader.
The book not only teaches all trading basics but even very detailed crypto trading strategies with precise scenarios, where to find entries and exits and where to put the stop loss order. It explains techniques a newbie would never have thought of. So this ebook is definitely kind of a must have and the cost are nothing compared to the value a successful trading carreer would mean.
Click here to check out the ebook.
If you want to be a successful trader someday then you do need to practice your patience. Keeping it cool even if you are on a verge of losing everything you just saved for the last five years can be a daunting task that you will be able to handle easily with practice. Approach trading as a rational business where losses and gains are in every day’s work.
Understanding that cryptocurrency is not the answer to your monetary problems is the first step in becoming a great trader. The misconception of people and crypto is that some think that this is a “get-rich-scheme” wherein you just need to have BTC under your name and that’s it. There might be BTC success stories lying around, but these people were just plain lucky and they took a gamble which you should not be doing! Being knowledgeable and lucky are two different things and we wouldn’t want you to rely on the latter.
Did you ever wonder how great traders read the market so good? It’s because they use proper strategies and not rumors. A good trader always goes with strategies and plan things out before going into trading and without getting emotionally caught by the price action too much. Strategies go hand-in-hand with proper risk management to contain losses and keeping it to the bare minimum.
Leverage trading is something that a new trader will explore and find “useful” since you only need to shell out a fraction of what you can actually trade. For example, if you have a website that offers 2:1 leverage this means that you only need $1 in order to make a $2 trade. You put up 50% (2:1) of the asset and the broker will lend you the rest. Of course, just like any loan you need to pay leverage fees which would greatly range from one website to another. Fees can be nothing if you are always winning, but what if you lose? This is where the problem comes in; that’s why if you are new to trading, avoiding leverage is the best thing to do.
Good traders always learn from their mistakes and acknowledge them. With this in mind, traders that are good at what they do actually excel because of the failures they have personally experienced in the past. Do you think you have what it takes to actually make money with trading? Share with us a few tricks that you have learned in the comment section below!
Please note: This post is not financial advice and should not be treated as such. The reader’s trading decisions are only up to him/her. This post doesn’t replace a personal financial advisor.