🧵How to Become a Better Trader
As an ex beginner and now a full time trader I have some tips for you.
This is the second part/thread of the top mistakes beginner crypto traders make.
Enjoy and RT for part 3.
#crypto #cryptotrading
As an ex beginner and now a full time trader I have some tips for you.
This is the second part/thread of the top mistakes beginner crypto traders make.
Enjoy and RT for part 3.
#crypto #cryptotrading
Here is part 1:
1. Thinking it’s easy
Trading crypto is a game where you play against whales, AI, irrational retail traders and people 100x smarter than you. Do you have what it takes to beat them?
Put in the effort and find your edge or big losses are inevitable.
Trading crypto is a game where you play against whales, AI, irrational retail traders and people 100x smarter than you. Do you have what it takes to beat them?
Put in the effort and find your edge or big losses are inevitable.
2. Being naive
If it looks too good to be true, it probably is. Don’t fall for magic indicators, insane APYs, paid groups, pump and dumps, giveaways or any other things that appear to offer an easy way to earn a lot of money.
If it looks too good to be true, it probably is. Don’t fall for magic indicators, insane APYs, paid groups, pump and dumps, giveaways or any other things that appear to offer an easy way to earn a lot of money.
3. FOMO
You might get lucky a few times when longing pumps or shorting dumps and longing unconfirmed bottoms and shorting unconfirmed tops. But at the end you will get rekt. It’s better to miss out on a few % gains and wait for a good entry.
You might get lucky a few times when longing pumps or shorting dumps and longing unconfirmed bottoms and shorting unconfirmed tops. But at the end you will get rekt. It’s better to miss out on a few % gains and wait for a good entry.
4. Lack of patience
This is my weak point too. Sometimes markets are slow or act a bit differently than you expected so you might get scared/impatient and exit too early or enter too soon. Stay true to the reason of your entry as long as it’s not invalidated.
This is my weak point too. Sometimes markets are slow or act a bit differently than you expected so you might get scared/impatient and exit too early or enter too soon. Stay true to the reason of your entry as long as it’s not invalidated.
5. Relying on others
Don’t make your entries based on influencer’s calls. And don’t blame them if you get rekt doing it. Only use that info as an idea and study the situation on your own. It’s completely your fault if you blindly follow other people and lose your money.
Don’t make your entries based on influencer’s calls. And don’t blame them if you get rekt doing it. Only use that info as an idea and study the situation on your own. It’s completely your fault if you blindly follow other people and lose your money.
6. Going all in
Avoid putting all the eggs in one basket. It’s great if you’re right but it hurts much more if you’re wrong.
If your capital is too small to get any relevant gains, just calculate your position size and use appropriate leverage. I made a lesson about this.
Avoid putting all the eggs in one basket. It’s great if you’re right but it hurts much more if you’re wrong.
If your capital is too small to get any relevant gains, just calculate your position size and use appropriate leverage. I made a lesson about this.
7. Buying the news
If a project has an announcement coming, you should know that price will likely dump when the news hit. Never enter the big green “news candle”. You should buy the rumor and sell the news.
If a project has an announcement coming, you should know that price will likely dump when the news hit. Never enter the big green “news candle”. You should buy the rumor and sell the news.
8. Over studying
Beginners often study countless different strategies spend months looking for the holy grail of trading knowledge. It doesn’t exist. Learn the basics, observe the charts, backtest your strategies and start trading asap. Experience is the best teacher.
Beginners often study countless different strategies spend months looking for the holy grail of trading knowledge. It doesn’t exist. Learn the basics, observe the charts, backtest your strategies and start trading asap. Experience is the best teacher.
9. Bad time to trade
If your mind isn’t fully focused, don’t trade! Take a break and come back when you’re better.
Trading when tired, drunk, sad, desperate, depressed, etc will make you take stupid decisions.
If your mind isn’t fully focused, don’t trade! Take a break and come back when you’re better.
Trading when tired, drunk, sad, desperate, depressed, etc will make you take stupid decisions.
10. Attachment to money
Don’t look at the trading capital as money in your wallet. Think of it as a tool you need to make money. Otherwise you won’t be able to handle the swings in PnL of an open trade or losses.
Don’t look at the trading capital as money in your wallet. Think of it as a tool you need to make money. Otherwise you won’t be able to handle the swings in PnL of an open trade or losses.
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