Avoiding the pitfalls of bad cryptocurrency trades
Cryptocurrency trading strategies can bring success. They should be like music to the ears. How many times is a trade really like that? No one can tell you that for you personally. Changing from a losing strategy to a winning scenario may take more than just one bad trade experience. Luckily, nothing is impossible, including tackling markets and making great cryptocurrency trades.
The unpopular opinion for growing your success in cryptocurrency trading
The first thing that may need changing in a trading strategy are thinking patterns. Impatience will have to be left behind. Good trades many times need a “wait and see” mentality. Capricious personalities find it extra hard to wait for those golden opportunities. This can be changed, but it will take dedication. Taking a good hard look at discipline levels is judicious. You may have seen the picture with “The Rock” (Dwayne Johnson) that says; “We all must suffer one of two things; the pain of discipline or the pain of regret.”. Once a few successful trades are under your belt, take a look back at how you were thinking at the time. Retrace your thinking patterns, not just the graphs and signals from the charts. Growing in cryptocurrency trading strategies will probably require a change of thinking habits for some personalities.
Managing risk can be a tricky proposition
Cryptocurrency trading strategies are similar to forex methods. They may be identical. With higher risk can come higher rewards for the careful trader. As a new trader becomes accustomed to being on the winning side, a common mistake can still occur. It can be called the; “Blind Risk Link”. It can be called the worst mistake of trading cryptocurrency. What is this blind risk link about? As it alludes, there are some ways that traders are blinded by continually having success. This creates a pattern that emerges and can become disastrous. Here is how it works. A trader finds a working strategy. They then begin to dump all their crypto from their trading winnings into the next trades. They think that all of those trades are going to have success. Many of those trades do have success, so the trader continues down this same pattern. But some of those trades are actually failures. The trader loses money, but because the majority of the trades are successful, he or she stays with the same pattern. As the trader continues, they are making less and less money, because not all of the trades are good. Soon, the pattern of the “Secret Risk Link” starts taking effect and the trader has lost a significant amount of money. It looked good at first, but in the long run, it was a pitfall to put all the “eggs in one basket”, as they say. Especially since the objective is to get ahead and limit losses as much as possible.
Stick with the simplest cryptocurrency trading plan
The “buy low sell high” strategy is the most common of trading strategies. Some people still miss it by complicating things. This is another pitfall. Keeping it simple until the trades are practically second nature is wise. Get to know the markets, watch the volatility and the news. There are a lot of things that make the value of a cryptocurrency go up or down, including those “whales” you have heard about. Whales are the rich people with a lot of money that cause the value of a cryptocurrency to go up or down with large buy or sell orders. The rest of the traders, who have less money, will need to know how to go with the trends. They will then be able to avoid the pitfalls of bad cryptocurrency trades.