That statement sounds familiar to every soldier around. Although we are not dealing with a risk to human lives, losing your expensive Bitcoins by making mistakes trading is definitely not a fun situation. So, how we can avoid those mistakes in our trading?
Side by Side Comparison
How to be mostly on the green side? First, it is important to note that to trade right requires attention and your one hundred percent focus. Secondly, trading is not for everyone. After all, we are not rational human beings. Have a reason before entering each trade: Not all traders make gains from trading, since this is a zero-sum game for everyone who benefits someone else loses on the other side.
The Altcoins market is driven by large whales yes, the same ones responsible for placing huge blocks of hundreds of Bitcoins on the order book. The whales are just waiting patiently for innocent little fish like us to make mistakes. Even if you aspire to trade on a daily basis, sometimes it is better not to earn and do nothing, instead of jumping into the rushing water and exposing your coins to losses.
From my experience, there are days where you only keep your profits by not trading at all.
Target and stop when starting a trade: For each trade we must set a clear target level for taking profit and more importantly, a stop-loss level for cutting losses. A Stop-loss is setting the level of loss where the trade will get closed. Here again, it is important considering a number of factors when choosing a stop loss level correctly. Most traders fail when they fall in love with a trade or the coin itself. And nobody wants to be the one who is left holding it.