We, humans, are designed in a way that any failure, either makes us start or stop and losing some expensive bitcoins through mistakes in trade, it is not what we wish to have. But then, how can we avoid these mistakes and stay in our secure zone?
Remember, trading requires attention and a focus, 100%. It is not for everyone and anyone. But the below-mentioned tips will help one to make it easy for internalization, no matter how difficult trading can be and how irrational we can human be at times.
Have a reason for trade or try none
One must try to enter every trade only with a strong and clear, trade strategy. Trading is a game of zero-sum. Not all traders can be profitable. For every benefit you make, there is a loser at the other end.
Surely there are large whales who drive the market of altcoin and are responsible for a block of Bitcoins (in hundreds) to be placed on their order list. These whales wait for small traders to make simple mistakes. So, one must try and not jump in the trend and get oneself exposed in the line of some substantial loss. It is better to do nothing at times because, even without trading, profit is in the hands of one who does not trade.
Stops and Targets- use the plan wisely
One must ensure to plan and set the target level for taking the profit at every position. Having stop-loss (maximum losses that seem affordable before closing position) level will also help to cut down losses. Factors must be considered for choosing the level of stop-loss and falling in love with position or coin; it can be a failure for sure.
The traditional stock market considers 2-3% as a part of strong volatility, and trading in cryptos at this stage becomes riskier. In just a few hours, one can get themselves at a position having 80% of coin dumping, and none would prefer to be left out holding it.
Be aware of Fear of Missing Out (FOMO)
We often feel missed out when there are ongoing 2-digit gains, and we are waiting there, simply looking from outside. The worst kicks in when the troll-boxes starts the talk about that ongoing high.
This is where we step ahead and move forward and forget about those huge whales waiting for us to sell the coins to them, which we bought at a lower rate. With price rising, the little fishes become the lucky holder, and next comes to the bright red candle, trying to sell through the complete order book.
Have a better Risk Management plan
Movement edge, this is what one does not look for, to be a profitable trader. Trying to get small gains for accumulating big is what one goes ahead and looks for, and this is where the statement comes into line, “With every risk on fate, one doesn’t get its grace.” It is better to manage the risk wisely over the portfolio (never invest more than a small portion of the portfolio in the market with very high risk, as for such high-risk positions, great tolerance positions are to be assigned. It is better to have a stop and target the levels rather than continuing with the buying level.
Cryptocurrencies- A trade against the Bitcoin
Volatile market conditions are created by underlying assets. Instead of the fiat, most of the altcoins are traded against Bitcoins, a volatile asset as compared to any fiat currency. It is an important factor to be considered as Bitcoin’s price move sharply.
Previously, Bitcoin exhibited a correlation with Altcoins, which was inverse, but since 2018, this correlation remained unclear. Trading in volatile Bitcoins are foggy, and with not far to see ahead, it is better to close the targets and stop the losses set or do not trade at all.
Trading Altcoins needs, the must-have tips
There are most of the Altcoins that loose value with time. Slow or rapid, either way, they bleed. But the market has changed a lot since the past few years, and it suggests being careful while choosing Altcoins.
Holding Altcoins for longer-term or while building a crypto portfolio for long-term, the projects or the Altcoins with trading volume higher daily and is backed up some significant community is highly probable to stay. It is better to follow the chart and identify low as well as stable periods (accumulation periods on whale’s part) for the coins as with kick-in of the right time; the pump starts with project announcements as positive, where the whales will finally sell out for profit.
ICOs/IEOs and the Token Sales/
ICOs are token sales of crypto. Crowd-sale is put on hold by many projects where the investors are getting opportunities for buying shares in project token at a reasonable price. Herein, the token is listed on the secondary market (for early investors, crypto exchanges will yield better profits), is the major investor motivation. Many such successful sales of the token have been seen in recent years; the ROI of 10x was not uncommon.
But remember, not all projects reward investors, many prove to be scams. They were not being traded, and they disappeared, with no word over it again. It does become hard to trust token sales, but you can do if you know the amount of money being aimed by a project to be raised. The working product will not be developed with Little raise, but with vice versa, enough investors won’t be left out for buying through the secondary market. So, better manage the risk and try not to put all money at one IEO/ICO as it is of high risk.
Make a start today
- Do not try to buy from the order book. It will be cheaper to post a new order as a market maker to the order book.
- Having optimal conditions and then making a start without pressure and with an optimal trading plan will be a better choice. Remember, pressure does not always create the right choices and will hurt the trading plan.
- It is best if there is a target set before placing sell orders.
- Place a low buy order with a success strategy and special care.
- With news published by major news outlets, it is exactly the time to say the coins, goodbye.
- As long there exists profit, one can do fine. So, it will not be right to chase the FOMO or trade under pressure. Starting next trade with no pressure and finding oneself loose it, is what one should do.
- Trading needs one to earn profit, not to have the right trades. It is not the right move to waste time and money and prove it was the right position to enter. All one needs to keep is winning trade number>losing trade.
- Learning to short bitcoins and the other cryptocurrencies will be good as bear markets are best for making profits.
Financial news and other traders are to be ignored
Remember, most of the analysis and posts published by the traditional press are generally biased or a part of a promotion made by a company or the group. So, invest the time saved to learn to invest in long-term trends using financial pieces read. Investment opportunity will not arise reading news.
Do not even try to complicate the analysis you made by listening to stories of other traders. Competing brings in unhealthy FOMO, while skills improve with concentration paid to oneself.
Set end-goal with long-term plan
Trading is for a reason and invested funds can be lost. So, setting short and long-term goals should be made on trades accordingly. Funds needed in the short term should not be risked. Overall goals should never be aligned with trading positions and risk management.
Crypto Scams are to be identified
Surely Altcoins are tempting, but the field of cryptocurrency has also attracted many scammers. New traders can send away their funds thinking for the high ROI or by ICO/IEO investment. Remember, cryptocurrency got no insurance. So, identifying scams learning is important as not all entrepreneurs want your fund with correct reasons. Think before investing, and do not just contribute the valuable cryptocurrency.
Long-term portfolio- Needed knowledge
Only a few cryptocurrencies make survival in the long-term. Most coins position change from year to year. As not all survive, a wise decision is to be made for including Altcoins (also its percentage) in a long-term crypto portfolio. As the market cannot be timed, it is better to do it and create another crypto bubble at another time.
Until Fiat is met, profits are temporary
The crypto portfolio fiat value is the key. One must measure the value of total portfolio value in fiat currency if it can be used for measuring the world’s money.
One gets cashed out only when the fiat reaches a bank account. No matter how good a trader one is, one can lose their funds if they do not follow security rules.
Group creation with Trading buddies
Information about the crypto world is huge, and they move quickly. So, to stay up to date, reliable friends’ group, where one can share fundamental as well as technical data, will help.
Find the tips worth? There is more to it
Every share is appreciated. More articles on tips and guides have been published to help one avoid mistakes in trade. Use it and trade free.