An emotional post by Medium’s user cane structures main problems a newbie might run into in crypto trading.
Mistake #1: Trading on leverage
If you know how to handle it it’s a great ride. But you don’t. You’re brand new, you don’t even know how to drive a car to begin with. Trade spot positions first.
Mistake #2: Repeating Mistake #1 after taking a big loss
Mistake #3: Taking trades off of charts from people on crypto twitter
“News flash — no one is posting a chart until AFTER they have bought what they are posting. Is this cynical and not usually the case? Yeah. But trading is a zero sum game, meaning for you to win, someone else is losing. As such, trading only off of someone else’s calls is like playing poker and you always have your cards available for the other person to see.
Mistake #4: Not having a trading plan
You should not be in a trade unless you know at least these 3 BASIC things
• Your risk
• Your target
• Your stop loss
If you don’t know all 3 you have no business being a trade. No discussion on this.
Mistake #5: Chasing price
If you don’t have a plan you will be emotionally swayed to enter into a trade anytime you see price moving.”