Here are 6 common tips and mistakes in trading digital currencies
@oroujda - The circulation of the Bitcoin and other alternative digital currencies is a raging river. They do not stop and change very quickly, and are often accompanied by major events. If you swim against the current, you may disappear and disappear completely. In order to improve your trading skills and improve your understanding of the market, it is better to learn from the mistakes of others. Undoubtedly, mistakes are also made all the time, and have been used to provide these tips.
Buy and Sell Orders - How to properly order orders
It's all about volatility. On this basis, when you enter as a trader, it is advisable to set a level of sale until you have earned profits. But instead you can aspire to make this process successful by setting a Stop Loss level to minimize losses. But how can we know exactly where we place these orders? In order to identify areas of resistance and support, we need to begin analyzing the chart at its simplest level. We define the points where we can capture the profit (resistance levels), while at the same time we determine the support levels.
Graph Analysis: Alternative Digital Currency VS Bitcoin VS Dollar
Major alternative digital currencies have the most volume against the dollar. For this reason, the graphs of these currencies should be analyzed and compared with the Betquin curves and dollar curves. If we analyze the value of the Bitcoin alone, we will no doubt miss the price of the price of the ethereal to almost $ 300 (which brings the memory of the rise of the Bitcoin to $ 300 in 2015). At present, etherium is trading a month from now at more than $ 1,000 per single ether.
Targeted emotions rolling
There is an unbreakable rule in trading; you should never share your emotions in trading. This is a basic rule for anyone trading at any time, but it applies especially to those who trade in the short term. Why is this happening to us? This translates into a single word - passion. Emotions - in this case - range from fear of loss, which affects us and completely hinders our decision-making plan. If you are one of those (yes, I mean the majority) who do not buy a second stake in the above example - you should consider your future as a trader in the digital currency area in particular. Overcoming your emotions is also important after an unsuccessful trading session,
What falls is not necessarily rising again
Another common problem is the search for collapsed currencies, in accordance with their value against the Bitcoin, in the hope that they will return to their previous glorious prices at a certain point in time. We can never know that. You can certainly not assume that a currency drop from its peak price is a greater opportunity to buy. There are also currencies that disappear and slowly exit from continuous trading
Time is money
Equivalent to one week in the digital currency market 3 months in traditional stock exchanges, in terms of events and accidents. One who wants to jump deep into digital currency trading should follow it not only on a daily basis, but also as a courier. In addition, you have to consider the time invested in the process. Sometimes you will benefit from being a long-term investor, rather than a day trader. By the way, being a daily trader does not necessarily mean you have to commit to selling, buying and trading on a daily basis.
Do not put all eggs in one basket
In the end
Good traders recognize their mistakes, and most importantly, they analyze and learn from them, thus improving their market understanding skills. What kind of traders are you? Have you found yourself anywhere in this article?
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