We all make mistakes) I have prepared for you a small selection of 5 mistakes that, according to my observations, traders most often make.
1. Inflated expectations. The crypto market is not a casino where you can earn millions in one day. Yes, trading can make you a lot of money. But you must understand that being a trader is a profession. And in order to earn good money, you must first become a specialist in this matter. For this you need to study.
2. Inability to manage risks. I have previously recorded a podcast on risk management for you. I'll leave the link at the end of the post.
I once lost half of my deposit due to one bad trade. Because I had no idea about risk management and was guided by immediate desires.
It is very important to understand that you cannot put all your money on one trade or coin.
3. Too many deals. When you're just starting out, it seems like the more trades you make, the more likely you are to succeed. But in the long run this only leads to losses. At the beginning of my journey, I thought so too. At one point, I had more than 5,000 trades open in a month. Now I remember this and don’t even understand how I could do such a weird thing))
4. Lack of strategy. Opening deals “by luck” or “on a whim” is a road to nowhere. Success comes when there is a clear plan and strategy. I believe that having a strategy is what distinguishes a trader from a casino player)
5. Emotions. It is under the influence of emotions that people most often lose money. Because of your emotions, you close deals ahead of time or rush into them, without analysis and a clear exit plan. This of course leads to liquidations and disappointments.
If you are familiar with these errors, don't worry. I'll tell you a big secret - all successful traders face these mistakes. You just need to work through them. This is the peculiarity of trading))
Tomorrow my Internet will be better and in the podcast we’ll talk in more detail about psychology, strategy and understanding the market.
