To be a successful cryptocurrency trader, it's paramount to avoid some common habits that often lead to poor decisions and huge financial losses. In this article, we will be looking at some of these habits you must do away with in order to progress in trading.
1. Impulsive Decisions: This is one of the most common bad habits that most traders suffer from. Always avoid making trading decisions based on your emotions, rumours, or short-term price movement; all these often lead to poor decisions, which automatically mean financial loss.
2. Overtrading: Almost every trader is guilty of overtrading, either when they're losing a substantial amount or when they are overly happy with floating profits. Trading too frequently or with excessively large positions can lead to high transaction fees and increased exposure to risk. Maintain discipline and avoid overtrading in your journey to success.
3. Ignoring Risk Management: Funny enough, some traders, especially newbies, don't even know there's something like risk management; they just jump into a trade without weighing the cons and pros. Failing to do proper risk management on your assets before entering a trade can easily lead to substantial losses. Some traders don't even know about stop-loss orders or how to effectively use them to their advantage.
To be continued.
Do you find this article useful? Tell us in the comment section, like, and share with your friends as well.