Hi Selma, welcome to trading!
It seems your losses might be due to a few factors, even though your trades showed small profits on paper. Let me explain where the issue might lie:
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Where the Problem Might Be
1. Transaction Fees:
Every trade (buying or selling) incurs a fee on most platforms, including Binance. These fees can add up, especially if you're trading in high amounts or frequently.
If your profit margins are small (e.g., $BTC from $90,000 to $91,300 or ETH from $3,000 to $3,120), the fees may eat into or exceed your profits.
2. Spread Costs:
The spread is the difference between the buying (ask) price and the selling (bid) price.
When you buy, you’re paying a slightly higher price, and when you sell, you get a slightly lower price. This difference can impact your profit calculations.
3. Stop-Loss Execution:
If your stop-loss was triggered, you might have sold ETH or BTC at a slightly lower price than expected due to market fluctuations or slippage.
4. Portfolio Weighting:
Since 70% of your portfolio was in ETH, the fees and spread on ETH transactions may have impacted your overall portfolio more than you anticipated.
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How to Improve Moving Forward
1. Understand Fees:
Check your platform’s fee structure for both trades and stop-loss executions.
2. Account for the Spread:
Use tools like limit orders to set specific buy/sell prices and avoid unfavourable spreads.
3. Track Real-Time Profits:
Use a trading calculator or app to factor in fees and spreads before making trades.
4. Optimize Portfolio Allocation:
Diversify carefully, and ensure you’re not overexposed to one asset unless you're confident in its movement.
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Join the Conversation!
Trading can be tricky at first, but with practice and proper tools, you’ll get the hang of it. If this was helpful, follow me for more tips and share with others who might find this useful. Let’s grow together as a trading community!
Feel free to ask any more questions, Selma!