20 BITTER TRUTH EVERY TRADER MUST KNOW ABOUT CRYPTO BEFORE TRADING 😕😕😕
1. Losses are Inevitable
No matter how experienced or skilled, losses will occur. Accept this reality.
2. Emotional Decision-Making is Deadly
Fear, greed, and emotional impulses lead to poor decisions. Stay rational.
3. Market Volatility is Unpredictable
Even with analysis, markets can move unexpectedly.
4. No One Can Predict the Market with Certainty
Experts' opinions are just probabilities, not guarantees.
5. Risk Management is Crucial
Set stop-losses, limit positions, and diversify to minimize losses.
6. Trading is a Marathon, Not a Sprint
Focus on long-term goals, not short-term gains.
7. Leverage Can Be a Double-Edged Sword
Amplify gains, but also amplify losses.
8. Overconfidence Breeds Disaster
Stay humble, recognize limitations.
9. Market Noise and Fake News Abound
Verify information, avoid impulsive decisions.
10. Trading Alone is Challenging
Consider seeking guidance, mentorship.
11. Past Performance Doesn't Guarantee Future Success
Even successful strategies can fail.
12. Fees and Commissions Eat Away Profits
Understand costs, minimize unnecessary expenses.
13. Diversification is Key
Spread risk across assets, industries.
14. Trading Plan Essential
Set clear goals, strategies, and risk management.
15. Psychological Well-being Matters
Manage stress, maintain work-life balance.
16. Regulatory Changes Can Impact Markets
Stay informed, adapt to changes.
17. Market Manipulation Exists
Be cautious, recognize potential manipulation.
18. No Holy Grail or Get-Rich-Quick Scheme
Sustainable success requires effort, patience.
19. Trading is a Continuous Learning Process
Stay updated, improve skills.
20. Survival is the Ultimate Goal
Prioritize preserving capital.
Before trading, remember:
1. Education is key.
2. Experience is valuable.
3. Risk management is essential.
4. Emotional control is critical.
5. Realistic expectations are vital
Sources
1. Investopedia
2. TradingView
Heed these warnings, and trade responsibly.