Trading in stocks or trading in cryptocurrency is the the same.
Mistakes are common and sometimes cannot be avoided. Being successful in cryptocurrency trading requires breaking bad habits because they can lead to financial breakdown.
Now talking about trading, lets go into the intimidating but exciting trading market and learn some best trading tips while avoiding making mistakes.
For both those in the traditional trading stock trading market or cryptocurrency trading market, this is for all investors.
- LEARN TO MANAGE THE RISK
Managing money needs to be your first priority and has to be strict. Try not to risk more than 2% on one trade.
are you following?
Create a different portfolio by investing in a number of stocks or cryptocurrencies.
then the risk of loosing money would be turned down.
Diversify from the group of investment that has the same negative fact or attached to it , because if you invest all in one place the possibility of loosing everything is high.
- KEEP AN EYE TO ALTERNATIVE INVESTMENT OPPORTUNITIES
Stock and cryptocurrency market gets new additions everyday. Keep close look out for these potential projects and turn them into your favor.
For example; initial coin offering (ICO) is something that brings about variety of projects that are looking for crowd sourcing in the market. Blockchain based startups are also a great investment opportunity for you to get into. So, never stop looking for new projects to invest in as they never stop coming.
- SENTIMENTS DRIVES THE PRICES, SO STAY UPDATED
Both stock and crypto market changes every hour and sometimes every minute. Not everyone can play this game and if you want to get into its deep end, you need to have a good knowledge about it.
For example, coindesk is one of the best sites to get all the update information on crytocurrency news and for the stock market investors, Reuters can help you alot.
Follow the trends at your own risk, dont go trading against the the trend. Fighting the trend is neither easy nor cheap. Understand the process of demand and supply before making decision. It may benefit you atimes not always.
LEVERAGE TRAP IS NOT FOR ANYONE.
Leverage is basically using the borrowed money to put into trading. It is a tool that can turn out to be good or bad. If you end up loosing your borrowed money, you would be in debt of your initial investment and borrowers interest, so avoid making this mistake.
YOU WILL LOSE SOMETIMES AND IT IS OK
Knowing how the market changes, many traders mostly beginners make the mistake of coming with unrealistic goals. It is entirely possible to make thousands in a day and at the same time loose millions. Just focus on your trading and the money will flow naturally.
The idea is to empower the investors, no matter if you belong to the traditional stock market or cryptocurrency market.
When trading, follow these tips while you avoid making mistakes to gain the most of your investments.