I think one of the biggest mistakes is following the hype but not the fundamental. Very often we see prices rising a few folds even though nothing concrete was delivered by the project. During the fomo period in December 2017 and January 2018, we saw how a "rebranding" exercise can create hype and result in unjustified price pump.
Next, I think many people do not follow project updates closely when they are heavily invested. For stocks investing, we are often fed with information as a shareholder. At the very least, we get informed of the annual financial results. For crypto projects, the onus is on each trader to keep track of every project by following the project social media. At good project can turn sour very quickly due to a lack or a scandal. So do keep a lookout.
Thirdly, it's that many people do not take profit early enough. Many inexperienced traders watch a Crypto rises 30% in a day and expect it to keep running up. Some might even fomo and add more to their position. Experienced trader will instead take some profit and wait for a retrace.
Finally, many traders do not have a consistent strategy and even for those who have, they may not have the discipline to follow it through. That's my own mistake that i am very mindful of as well.
I do advice people not to trade with emotions,when trading always make sure you trade based on analysis,do not trade based on your own personal sentiment,trade based on the information you have about the market
I would say the most important rule when trading or investing is never invest more than you are willing to lose. The cryptocurrency space is the most volatile trading spaces there is. Prices can swing drastically up or down and it is very likely that you will lose money if your not smart about the way you are trading or just buying and holding coins.
Buy Low Sell High is a simple statement which we take much time to understand. We always buy following a news or hype or FOMO, we can control all this by following the one policy which is Buy Low Sell High. No one is going to fail even if a newbie, I have experienced this and I go rekt when I buy in hurry but I never sell and wait for the price to go up.
View this answer on Musing.io
I think one of the biggest mistakes is following the hype but not the fundamental. Very often we see prices rising a few folds even though nothing concrete was delivered by the project. During the fomo period in December 2017 and January 2018, we saw how a "rebranding" exercise can create hype and result in unjustified price pump.
Next, I think many people do not follow project updates closely when they are heavily invested. For stocks investing, we are often fed with information as a shareholder. At the very least, we get informed of the annual financial results. For crypto projects, the onus is on each trader to keep track of every project by following the project social media. At good project can turn sour very quickly due to a lack or a scandal. So do keep a lookout.
Thirdly, it's that many people do not take profit early enough. Many inexperienced traders watch a Crypto rises 30% in a day and expect it to keep running up. Some might even fomo and add more to their position. Experienced trader will instead take some profit and wait for a retrace.
Finally, many traders do not have a consistent strategy and even for those who have, they may not have the discipline to follow it through. That's my own mistake that i am very mindful of as well.
View this answer on Musing.io
I do advice people not to trade with emotions,when trading always make sure you trade based on analysis,do not trade based on your own personal sentiment,trade based on the information you have about the market
I would say the most important rule when trading or investing is never invest more than you are willing to lose. The cryptocurrency space is the most volatile trading spaces there is. Prices can swing drastically up or down and it is very likely that you will lose money if your not smart about the way you are trading or just buying and holding coins.
Buy Low Sell High is a simple statement which we take much time to understand. We always buy following a news or hype or FOMO, we can control all this by following the one policy which is Buy Low Sell High. No one is going to fail even if a newbie, I have experienced this and I go rekt when I buy in hurry but I never sell and wait for the price to go up.
View this answer on Musing.io