7 Common Mistakes that the Emotional Bitcoin Traders Commit

2 min

Can you keep your emotions completely separate when you trade? This is the right thing to do, but unfortunately, few master the art of trading without being impulsive, greedy, or emotional. The reason why traders begin trading is usually because of the fear of missing out; this just shows how important human emotions are when it comes to trading. Some of the most common mistakes made by beginners are revenge trading, over-trading, impulsive trading, entering the market late, chasing the market, etc.

  1. One of the biggest blunders that rookie traders make is not planning ahead. If there is no plan in place you are destined to fail. You need to predetermine criteria for exiting and entering trades. Once you have set a time for entering the market, you must implement stop-loss orders to ensure that you have profits at the end of the day. You cannot keep changing your positions while the trade is on. If you are impulsive and rush into trades, chances are that results will not be as expected when the trades are mediocre trades.
  2. If you do not consider trading like a business or profession, you cannot succeed in it. For full-time traders, this is their source of livelihood and they must work on it just as they would to run any other business. This means having a plan and sticking to it, maintaining a trade journal to learn from past mistakes, having proper rules to earn profits for sustaining your lifestyle and business, and setting realistic goals. In the absence of a plan you are likely to make wrong decisions.
  3. As a trader you are most likely to be influenced by feelings of fear or greed. When this happens, the trade decisions become flawed and results are negative. When the stakes are very high and the decision does not pay off, the losses will also be high. This happens when you trade with greed. If you are afraid of trading and engage in it without conviction, you end up selling out too early and in the process, losing out on good profits. A certain degree of greed is needed to trade but if you try and chase the market and trade for fear of missing out, you will lose in the end. Too much greed leads traders to go past their target positions, and they fail to come out at the right time. The market goes south and they lose heavily.
  4. If you do not know when to carry out a trade you can lose out badly. It is wise to stay away when market conditions are not optimal. You need to have the right mindset to start a trade; if you think the market is going to uplift your spirits you are mistaken. When using autonomous trading option you must learn thoroughly about the software you use. For example, read this bitcoin era recensione or review which talks about bitcoin era automated trading software application.
  5. Watching the portfolio all the time is not going to increase your chances of success. If you keep viewing the trade progress you will probably feel prompted to change the stop-loss or exit before time.
  6. You should not make the mistake of trading with too much at stake, something that Bitcoin traders often do. It is best to start off with small investments first and then scale up the portfolio.
  7. Sitting in front of the computer screen and trying to trade round-the-clock will only leave you emotionally drained and frustrated. You must devote time to family and friends and take time out for pursuing other activities and hobbies. Avoid checking the market frequently; else, you will invariably end up making the wrong decisions. 

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