Crypto Trading - MISTAKES TRADERS (especially newbies) DO IN TRADING CRYPTO CURRENCIES THAT BLOWS OFF THEIR ACCOUNT. If you want to be a good Crypto Trader, Beware of these mistakes

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Hello Steemians, it is a pleasure indeed to be here again Sharing my opinions and thoughts with you on this platform. Today I come to talk on a Unique topic and something I have noticed. So I will talk about fundamental mistakes that are done by Newbies in crypto trading. Let's dive into it.

I can remember back in 2020 on Twitter, a Cameroon tweeps twitted how he will never invest in Crypto currency and how it was all a scam. So I knowing a little about Crypto trading decided to dive into a discussion with him and I told me he had invested 500,000 FCFA into trading and within 1 month his money vanished. And then I asked him how did he get into the trade and he told me a friend of his had given him the heads up and advise he trade. Then I continued with my questioning and discovered he doesn't even know how to trade and that the trade was place by a friend and that's why he feels so strongly against Crypto.

Now this is the issue, a lot of us have heard from social media and from our friends about the wonders of crypto currency, and how it has made billionaires since it was created. The same is true with the Steemit platform and like the guy in my example, we have blindly gotten into trading or whatsoever and because we knew nothing, we loss our money and become false witness to the crypto currency.

I am here to give a piece of advice which is actually my opinion. Please read and understand.

Mistakes people do in Crypto currencies and trading

1- No Background Knowledge about Blockchain.
The first thing I could identify about this guy is that he had no knowledge about crypto currency. How do you invest in a world or business you understand nothing about. This is a mistake and I will advice that before you get into any business or venture on life, please do read to understand, understand what Blockchain is, the purpose of Blockchain and why it is the technology of the future. Just don't go blindly into it. Below is a link you can Access books to read.

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2- Inadequate Research or information about the token project.
It is normalcy that people get into trading this days and buying of coins or tokens without proper research. This is one of the worst things to do in any situation in life. Because of the hopes of huge returns we fail to do research and have adequate Information about the project. A friend just tells you to buy a certain token and you buy without knowing the purpose of the token/project. Now if you had done 1 above by knowing about Blockchain technology and it's purpose, then research about the specific token now will help you to access if it is in accordance with Blockchain and evaluate the project. This is a big mistake and don't do it.

3- Have No Trading Plan.
It's just terrible how people have no plans when they are entering into trading. How do you venture into something with no plans. You don't know what number of trade to get into, how much to trade a day, your maximum number of loss or profit per day or week or month. The fact that you don't have this plans means you will easily blow up your account. So I am here today advising each and everyone to have a Trading Plan. It will contribute to your being a successful trader. Below is a sample Trading plan I did in an earlier post. This can help you to draw up a plan for yourself.

Month	Capital per month	Loss per day	Profit per day	Profit per month	Final profit.
January	$200	$2	$6	$180	$380
February	$380	$3.8	$11.4	$342	$722
March	$722	$7.22	$21.66	$639.8	$1371.8
April	$1371.8	$13.718	$41.154	$1234.62	$2606.42
May	$2606.42	$26.0642	$78.1926	$2345.778	$4952.198
June	$4952.198	$49.52198	$148.56594	$4456.9782	$9409.1762

4- No Risk Management.
One of the set back of not having proper knowledge about Blockchain and a particular token is that you will probably not have a risk management strategy. What I understood from these guys explanation was that he had no knowledge about Take Profit or Stop loss and because of this, he went into the trade with a stop loss and take profit because he knew nothing about it and so when price was in a downtrend, it went down until his capital was liquidated. Please study and have good risk management strategy, it if vital for your growth.

5- Greed.
Another mistake that most traders do is that they are greedy and so they refuse to practice risk management even when they know it. They keep thinking of the possibility of that price might rise above their Take Profit and they will loose out on the extra rise in price and so they forget about the downside of price also falling below their Stop loss. Please as a newbie in trading avoid greed by all cost, it is bad for trading.

6- Lack of Fundamental analysis in trading.
Technical analysis are good tools to deciding trading decisions, but they are just part of the equation. Fundamental factors are there that can always affect price. This is a big mistake traders do in the market. They completely ignore Fundamental analysis and concentrate only on technical analysis and so most times than not they have just the half picture of the market. This is very bad.

7- Blindly using Trading Indicators
Trading Indicators are a great tool to use but traders have to understand that on their own they are not accurate m therefore, they blindly follow this indicators and get very poor trading signals. It is advisable to always combine trading Indicators to get better trading Signals and not just follow blindly.

Conclusion

If as a trader or a newbies in the Financial market, you can avoid these mistakes then I think you be a successful trader. I myself I am still very new in trading but I believe my following this steps will greatly help me.

And for all Steem Cameroonians, I will encourage you to join the @SteemitCryptoAcademy if you have plan to venture into Crypto currency trading. There you will get good information about how to become a great trader.

Thank you for reading and let's keep steeming on

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