Breaking Bad Habits That are Killing your Trading Results
Do you lose money and fail in trading? Do you turn to candlestick patterns, graphics, technical indicators, but all for nothing? Don't you want to know why? The answer is simple, really: trading strategies and methods have nothing to do with it. It's all about your trading habits. Today we will list some of them that make you suffer losses, even if you don't realize it. Let's get started!
You Catch Up the Market
Consider a scenario where the market has been growing for several days. Seeing this, you want to make extra money. Guess what? You are not alone. A slew of traders dream of catching their "golden trend": to buy at a low price and sell at a higher price. We hate to burst your bubble, but hoping to score big, crypto fans are usually losing money. When you buy at the highs, the market is "exhausted" and rolling back prices (or even trend reversal) are about to appear above the horizon. The market needs to "rest” before continuing to grow. So, catching trends and riding them to the end is not the best idea.
Okay, so what do we do? The answer is: to trade by important areas. An important area in an uptrend is a level with potential pressure from buyers who are ready to push the price up (areas of support and resistance, moving average, trend line, etc.). Such trading will determine market entry when the pullback is about to end. In addition, you can place the stop loss below the support area for ensuring a safe risk/return ratio.
You Don’t Cut Losses
“I am sure the market will recover soon”, “I will not exit the position”, “I will look foolish under these circumstances selling right now"... We bet 80% of our readers recognized themselves. It's high time to banish those thoughts. Nothing good can come from them. Unless you want the market to punish you rather severely, let the stop loss do its thing (instructions for using this order are waiting for you here). If the trade doesn’t go your way, the transaction will be closed automatically. It will protect you from greater losses. Believe us, it is better to accept the little loss and move on to the next transaction.
You Buy (Sell) at the Slightest Fluctuations
To stay cool in any situation is a must for every trader. We remind you that cryptocurrency goes hand in hand with volatility. The price may change by 5, 10, 15% (or more) within 24 hours. On the one hand, you can make a quick buck. On the other hand, inconsistent actions can have the opposite effect. And that's why it's so important for you to stick to the trading plan and be confident in your action.
You shouldn't sell/ buy assets based on short-term crypto-price performance; you shouldn't check the chart every minute. Once again the coin price can fall by 10-15% during a day, and then quickly move back up (discover more secrets of profitable trading in our article).
Becoming a successful trader is way more simple than it looks. And to do that you have us! Equite will help to impress a potential investor and win his trust. Go to our website to find out all the details.