If you are a trader and want to be a consistently profitable trader here are the golden rules that I follow and trust me this is something which I acquire from experienced experts.
Common Crypto Trading Mistakes
Most people make common mistakes in trading, let’s make sure you’re not one of them. Below is a concise list of the 10 things most early crypto traders get wrong.
- 100% of your portfolio in a single coin: I would suggest investing just 5% to 10% max in any one single coin. With the only possible exception being Bitcoin maybe around 20% to 30%.
- Buying all at one price: Avoid this, instead buy in ladder entry buy 50% at some point, 25% at a lower point, 25% at a more lower point. With that, you will get a better average cost.
- Selling all at once: Avoid this too, instead sell in ladder entry, if there are 3 targets then sell 35% at first target, 35% second target, 30% at last target.
- Hope for your favor: Trading does not think about what you think. You must accept a loss if the current price reaches a decided stop-loss price. And book the profit at a given price.
- Stop Loss: Both stop and loss are negative words but keep in mind a double negative equals a positive. Use it in each position you make.
- Overtrading: AltSignals sends out 5-10 signals a day, but this does not mean you need to invest in all of them. You only need to invest in a few of them and make sure you do your own research as well. Make sure to earn 10% or 20% each day. Once you earn a pre-determined amount, stop trading.
- Compounding interest: If you follow 10% gain each day, then after 30 days your $100 investment becomes about $2k!
- Leverage trading: This is for experienced crypto traders only. Do not use it if you don’t know how it works.
- Emotional trades: Avoid trading if you are not well mentally or physically. Instead, take some rest and hangout.
- Using an obscure crypto exchange: Use the best exchange which is also popular, like Binance.
Cryptocurrency Trading Final Thoughts
These are the common things you should consider. There are other tips and tricks to maximize gain and minimize loss we will share it in premium. Make sure you join us if you want to be more and consistent profitable like us.