15 Crypto Trading Common Mistakes

1. Trading without a Trading Plan

It is vital to have a plan before fight in the market. Without this you are just gambling. You need to spot your entry/exit point, the maximum loss you are willing to take, your Money Management, your stop loss...

2. Countertrend Trading

Trend is your friend... It is easier to trade with the trend than against. Before take a trade make a rapid analysis of the market sentiment and open your position in line with the trend.

3. Not cutting your losses

“Cut your losses short and let your winners run.” Hold on to a losing position with hope can destroy your capital. Successful traders take theirs losses quickly. They set tight stop losses to limit their loss and protect their capital.

4. Overtrading

You can't trade like a robot. You risk turning your profits into losses and be frustrated.

5. Trading without Money Management.

It is important to know your risk per trade. Very strict money management is vital to survive. Generally I don't risk more than 2 % per trade and don't have more than 6 trading positions at any time. You can adapt your money management to the trend. Took more risk when the market is bullish and less in bearish trend.

6. Go all in

You can't win all yours trades. You risk being burned quickly. Invest a small portion of your capital in each trade. Generally I don't invest more than 15 % in one trade.

7. Not keeping a trading journal

A successful trader keep records of his trades and mistakes. Reviewing every day your trading activity can help you to be a better trader.

8. Failing to take profits

Trees don't grow to the sky. You need to have an exit strategy. You can place targets price or use trailing stop to protect your position. Book your profit and move to the next trade otherwise you risk being very frustrated.

9. Not DYOR (Doing Your Own Research)

Be careful with recommendations. It is better to make your own opinion instead of follow blindly some tips. Doing your own research is the most important step before take position. You need to know what you are buying and why you are buying at this price. If you trade in long term and look the fundamentals make research on your coin, don't be a fool to listen an expert who claim that a coin are going to go up x100.

10. Have realistic goals

To be successful in trading you don't need to win 1000 % on each trade. The most important thing is to follow your plan, respect your rules and completed your goal of performance. The result is just the cause of your performance.

11. Excessive Leverage

Leverage can destroy your trading capital in a flash. It can boost returns for profitable trades and duplicate losses on losing trades. For example a 100 leverage just need 1% adverse move to wipe your bank.

12. FOMO (Fear of Missing Out)

Don't panic buy ! The market offer plenty of good opportunities every day. Be patent and don't jump in a train if the coin has gone up significantly. Wait to buy at the best time, like in a support zone or during a breakout.

13.Looking for emotions, fear and excitation

Trading should never be emotional. It is like a job not a giant casino. It is important to control your emotions and respect your trading plan.

14. Wanting to be right

In trading, we don't care to be right or wrong. You can't win 100 % of your trade. We can just play probabilities and control the risk.

15.Overconfidence

It is a classic mistake. After a few winning trades we are like the king of the world. Overconfidence is dangerous. Excessive risk-taking and disrespect your strategy can lead to destroy yourself. Trading is not a quick road to success. It is very exigent and we need to question himself.