By Regal Assets DMCC

Regarding trading cryptos, most traders commit the same and similar mistakes from time to time. While trying to achieve the best profits and results, traders forget to take a step back to watch and analyze their previous actions to avoid the same errors and prevent them from happening next time.

Not Using Stop Loss (Risk Management)

When your planned deal goes wrong, a stop loss might assist you in limiting your losses. No matter how certain you are that a trade will go well, failing to use a stop loss is the worst blunder you can encounter. Almost all the trading platforms provide the options to set the stop-loss and take-profit.

Not Planning The Trade

SET YOUR GOALS! Do not try to make triple profits in a single time; instead, break down your goals correspondingly and achieve each of them individually. Small steps are better managed, and it is easy to go back and forth in case something goes wrong. It implies you’ll need to know your entrance and exit strategies and the amount of money you’re willing to risk.

Beginner traders frequently lack a trading strategy and are content to remain in a losing transaction for an extended period.

Using Real Money Before Paper Trading 

A paper trade is a simulation deal that allows investors to exercise buying and selling without putting their real money on the line, with its benefits and drawbacks. The name originates from a time when wannabe traders would train on paper before putting their money on the line in actual markets. So there are several benefits that paper trading can give you before starting the actual trade, which are…

• No-Risk
• Strategy Creation
• Trading Confidence
• Practicing Tools 

Yet some say that the tool gives you overconfidence, while in the real trade, there may be some emotional barriers that don’t appear in the practicing tools.

Avoid Learning Fundamental Analysis

Most beginners start buying famous coins and tokens following the mass hype and ignoring some real, valid, and accurate indicators. Emotions have no place in the trading environment. There are also types of investors who determine some fundamental values of the cryptos knowing about upcoming bearish trends, yet they invest with the hope of getting a bullish outcome based on their emotions. 

Fundamental and Technical analysis can actually ease your job. It is determined that 83% of the traders who trade with the corresponding strategy and research make a real profit. And those who don’t…well… unlucky.

Centralized Portfolio

When you see that your favorite, beloved crypto is not going well and you keep spending and reinvesting your money, you can eventually end up with both short and long-term losses. Instead of trading just one asset, you can diversify your portfolio while balancing your profits, investments, and risks. Also, this comes in handy when you are looking to get that famous 1000x crypto…

“Don’t look for the needle in the haystack. Just buy the haystack!”

-John Bogle