- Trading Without a Plan.
This first mistake is the most common and biggest error at “CryptoWorld”. You can not invest your money just because a coin looks good and you expect it to go where you want. Sometimes it does and can be a succesfull trade, but the reality is:
-If market goes up. It is probably to dont know where to get out because your self get greedy and finally you can not take your profit.
-If market goes down. Begginers can deny the fact that is not a good investment and keep holding because “its still on its run”
This has an easy sollution, make a plan. By making a plan theres only two ways to go. rigth, then you will know where to go out earning the profits that you were waiting. or wrong, in this case you will be allowed to afford the looses that you expected, if you where wrong when the plan was realised. Anyway, if you make a plan you will be prepared for both senarios. For example: 1 to 3 asumed risk. (+30%/-10%) So this way our profits will be 3 times bigger than our looses, due to this asumed risk, if you loose, you dont loose that much, and if you win you win much more and also alow you to enrich your knowledge.
- Emotional trading.
An other huge mistake when you are investing, its to put your feelings forward, because ii you invest without a plan and market goes down, you will be stuck on a long hold or may be just a panic sell. If goes high you will be thinking is going even higher, but may be not and that way all your profit will be lost just because you were emotionally attached.
Most effective sollution is make a plan and stick to it.
- Over trading.
The last mistake its to look at the market and think every chart is good or bad (depends on your mind). That happen because you are looking at charts for too long, making yourself doubt and it is the easiest way to go aganist your own trading plan.
- Always stick to your plan.
- Dont over trade.
- Dont even think to go against your trading plan.