Some trading mistakes beginners make

From my experience and from the research have done I believe some of this reasons might be among why newbies always lose in Cryptocurrency.

– Not doing analysis: Many people, especially newbies, have lost a lot of money in trading due to their inability to analyze the coin they are about to trade. You should know a lot about the coin and have done a lot of research on it, including all-time highs and lows, total supply, trading volume, and what the coin is used for, among other things. So, before buying a coin, do your research. Don’t just jump into a trade without knowing anything about the coin.

– Revenge trading: I believe that most traders engage in this practice, which is quite harmful. Revenge trading is the process of buying back a coin because you may have sold it at a loss the first time you bought it, and you simply want to make a profit, so you decide to join the coin again without doing your research beforehand. Nobody is flawless, so if you are involved in a trade and you lose the trade, you must go on and not sit around waiting for retribution.

– Trading pump and dump coins: There are a lot of coins out there now that are mostly pump and dump. You should always avoid pump and dump coins when trading. If you’re trading, make sure you’re exchanging high-volume coins and stay away from low-volume coins.

– Not keeping a trading diary: As a trader, you should keep a well-documented trading diary that includes all of your previous experiences and the coins you’ve purchased previously. However, most newbies don’t keep trading journals because they don’t document their experience; instead, they simply wake up and decide to enter any coin they want and exit the market whenever they want. As a trader you should have a trading diary which will include the date which you bought a particular coin and the date you sold it, the price which you bought a particular coin and the price you sold it, in the trade if you make a profit or lose and why you make the profit or lost and many more.

– Not having a target when trading: When trading, you should have a target as soon as you enter a trade, and as soon as your target is met, I believe you should exit the market. Most people have lost money because they don’t have a target. Some targets may be met, but greedy people will refuse to sell, which resulting in a loss.

– Trading futures too early: Beginners make this mistake frequently, and I made it myself. When trading futures, the risk is always high, and the reward is also high, so most newbies focus on the high reward and ignore the high risk and some might not even about the risk because they don’t really know much about future trading. I feel that before you begin future trading, you should have mastered spot trading, else you risk losing money without earning any profit, or your loss could be more than your profit.

– Entering many trades at once: As a beginner in Cryptocurrency, you don’t need to jump into many trades at once; instead, focus on one or very few trades that you believe you can monitor. If you have too many trades open, you may become confused and lose control of them; however, if you focus on just one trade, you can give it your full attention, whereas if you have too many open, your attention will be divided.

– Not using stop lose: Some people believe that using stop lose is a waste of time and money. While I understand that not everyone is interested in using stop lose, I believe that as a newbie, you should make stop lose a priority in all of your trades because it will help you cut or reduce your losses if things go wrong. However, as a skilled trader, you can trade without using a stop loss because not everyone prefers it.