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Hi Guys! Today, I want to briefly share with you four pitfalls you need to watch out for when trading crypto-currencies these times.
Number 1. The Claw back
The crypto market like the forex market is global, not in your pocket! So when you do make a loss as you will surely make, DO NOT try to recover “claw back” your losses immediately. Psychologically you have to train for this as it is one easy pit that rookie traders fall into all the time. Learn to “cut” your losses i.e. reduce your losses as quickly as possible and when you do, sit back and strategize properly before entering the market again.
Number 2. Trees Don’t Grow into Heaven
Put another way, profits DO NOT keep growing forever! Many traders expect their open positions to just keep rising, but all markets follow what Economists call “boom and bust cycles” you have to keep this in mind and forget about permanent profits. The market is going to rise sometimes, and it is going to fall at other times never forget this simple but crucial fact!
Number 3. It will Come Back
When it comes to the state of the market, many traders tend to think that “it will come back up” or “it will go back down.” This is a major pitfall that must be avoided. The antidote to this syndrome is found in the age old saying – “Tick says the Clock tick, tick, what you have to do, do quick” in the crypto space there are simply no guarantees, only opportunities, fleeting opportunities!
Number 4. Fear of Missing Out (FOMO)
This is probably the greatest of them all – the fear of missing out in the action, in the profits, in the windfall, in the greatest transfer of wealth that man has ever experienced! Well just know that there is a time to fold up and walk away, and do exactly that when that time comes – fold up, take your profits and walk away, without any fears!
By Daniel R.
(Buzwallet Contributor)
