Mistakes of New Traders.

Mistakes of New Traders.

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Lack of money management. Decide on the size of the deposit, which will not make you not sleep at night. Your state of mind is directly dependent on money management. If we are not afraid of losing investments, our mind will be sober, and it will be much easier to work according to plan. Be patient and trade with small funds until you understand how the market works. 

1) Lack of money management. Decide on the size of the deposit, which will not make you not sleep at night. Your state of mind is directly dependent on money management. If we are not afraid of losing investments, our mind will be sober, and it will be much easier to work according to plan. Be patient and trade with small funds until you understand how the market works. Remember that the main enemy of a trader is the trader himself, and the most interfering factor for trading are emotions: fear and greed.


2) Excitement. Don’t hurry, the market will not run away. The most stupid mistakes often arise in a hurry. Don’t be afraid to miss an opportunity - the market offers opportunities permanently. It is again a matter of emotions control. Each time, before a transaction, ask yourself what you want to do and whether it's your trading plan (whether the candle is closed, whether other signals are filtered, etc.).


3) Overconfidence. Confidence is a good thing, but everything should be in moderation. The market is a chaos, although there are some rules, but they do not always work. At any time the market can destroy any ‘wishlist’ of even the most respected analysts. Do not attempt to speak for the market, listen to it. 


4) Trading against the trend. Trading against the trend is always risky, whatever the appearances. Work against the trend is relevant only when you have vast experience. Are you sure you have identified the right ‘bottom’ in a falling market? Without adequate theoretical knowledge and practical experience in building levels, you will get an excellent opportunity to get a ‘second bottom’ as a gift.


5) Lack of diversification. Diversification is meant to reduce your risks. If we talk about diversification in a crypto portfolio, we have to involve investing in various trade crypto assets. You don't want to get stuck for a long time in a crypto coin bought for $2?