Novice cryptocurrency traders often think they can trade the market without having any complex problems. Eventually, they start breaking the basic rules of investment and try to earn money by taking giant-sized trades. Soon they blow up their trading account and blame the market. To succeed in the retail trading industry, you need to follow some basic rules and trade the market with a fixed set of rules. Most importantly, you need to avoid the most common mistakes at trading and only then you can succeed in the crypto trading world.
Though there are hundreds of mistakes you may commit in the crypto market, we are going to discuss the most prominent, common faults. Let’s dive into the details.
Trading the minute timeframe
You should never trade the minute time frame data in the crypto market. The market is extremely volatile and if you intend to take the trades in the minute timeframe, you will be under lots of pressure. Most of the time, you will fail to evaluate the risk profile in a standard way and thus you will lose big sums of money. Try to find the support and resistance level in the higher timeframe and look for the potential trade setups at that important level. Once you have identified the support and resistance level properly, you should feel more confident about your approach.
Trade with the premium broker
Successful crypto traders never trade the market with low-end brokers. They know very well that the low-end broker is going to make their trading career a living hell. Chose a broker like Saxo markets so that you don’t have to think about the quality of the trading platform. If you trade with Saxo, you will get access to the advanced trading platform SaxoTrader and this will make the overall trading process much easier. Most importantly, your funds will be in safe hands. No matter how large your trading capital is, you don’t have to worry about the safety of your trading capital.
Breaking the rules
The novice traders don’t like the concept of discipline. After winning a few trades in a row, they start taking the trades in a very aggressive manner and expect to earn millions of dollars in profit. Just because the cryptocurrency is extremely volatile doesn’t mean you have to break the rules to earn more. You must follow the trading rules in every aspect of your life. Once you become confident and follow a disciplined approach, you should be able to make a regular profit from this market. In trading, you should abide by the rules at any cost. Unless you do that, you will never feel confident in your actions in the investment business.
Trading with short term goals
Novice traders often set short-term goals. Some of them even set unrealistic goals which make the overall trading process extremely difficult. To make things easier, you should always trade the market with long-term goals. Once you develop the habit of trading with long-term goals, you will become more confident in your actions and thus you will learn to trade the market with extreme discipline. Forget about searching for shortcuts to becoming rich in this world. Consider trading as your business and abide by the rules.
Not paying attention to economic news
Being a cryptocurrency trader, you should be cautious about the major news release. If you ignore the importance of major news, you will keep losing big sums of money as soon as the market shares vital information regarding the use of cryptocurrencies. To avoid such a problem, you need to keep tuned into the economic news factors. Develop the habit of reading economic news regularly as it will make the overall trading process much easier. Follow systematic rules and trade the market with fixed sets of rules.