TECHNICAL ANALYSIS ERRORS IN TRADING CRYPTOCURRENCIES

Greetings dear members who make life in this reputable platform of @ProjectHOPE, trading cryptocurrencies is a procedure that consists of buying and selling cryptocurrencies in the corresponding market and in which you can generate profits or losses according to such movements. These will depend on certain factors which will be described below.

To make these investments we must go through a fundamental learning process in this area as is the technical analysis of digital currencies, which is to make a thorough assessment in the cryptocurrency market, however, in this process we tend to make mistakes, which negatively affects the economy of the person who practices trading, this particular activity can not be practiced and afford to incur in these errors, as they can leave you in a declining economic situation. For this reason Binance provides you with a tool where it indicates the main mistakes that are made in this process of traiding from the point of view of technical analysis.

1. You must learn to trade reducing to the maximum the level of loss, trading is an activity in which you need a lot of knowledge about it, since the main thing you should do is to protect your income in such a way that you ensure not only to win with such investment, but to reduce the percentage of loss in this.

2. You must be patient in your investments, in the area of cryptocurrencies the one who loses is the one who is desperate to sell the cryptocurrencies that has already acquired previously, in this sense we must learn to be patient and not rush to a desperate sale when our investments begin to decline. With this I do not want to take for granted that in trading only wins long-term investments, because there are some cases in which trading in short periods, tend to get their profits.

3. Investing after losses, it is not advisable to seek to reward a bad decision with new trading, since you are being moved by your emotions, which puts your new investments at risk.

4. Feel free to make and change decisions, because if you want to achieve success and good rewards for it, you must keep in mind that finances vary continuously and with them their values, so you can adapt to the best option of the moment.

5. Do not be moved by your emotions, you must perform a technical analysis, regarding market conditions, since these will move according to the buying and selling supply of the moment and sometimes they can be somewhat unstable towards one side, so it is not recommended to ignore these signals, because it can bring great losses.

6. Remember that the world of finance is closely related to the probabilities provided by technical analysis, so you should analyze all possible variants, in order to achieve financial assertiveness and obtain a good income.

7. It is advisable to take advantage of the knowledge of other people with more experience than yourself, because in it you can strengthen your weaknesses and overcome the different obstacles that are presented to you on the road of trading.

Finally with these 7 tips I hope that all those who want to start in the area of trading take into account that they should be trained as much as possible, because in this field a small mistake can cost us the security of having a secure long-term old age, we must rehearse as many times as necessary before making large investments and remember that whenever we want to trade is because we are expecting to win or lose that investment. Until next time friends.

Want to learn how to trade cryptocurrencies? Know these seven common mistakes in Technical Analysis. Source: