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Most novice traders who come to the exchange with a minimum set of knowledge drain the initial deposit in the first days. Some get frustrated, lose motivation and decide that trading is not for them, others realize that they need to learn and take things seriously. The ideal option is to start learning trading from the basics in order to come to the exchange with the necessary skills, as well as avoid losing a deposit using a few rules and effective tools.
Psychology of the crypto market: what mistakes do inexperienced traders makeThe mood in the cryptocurrency market is changing dramatically and rapidly, and you need to prepare mentally for this. A trader needs to understand that there will be mistakes, and it will not be 100% possible to avoid losses. It is worth learning to control emotions and think over a strategy of behavior in advance.
The following mistakes prevent beginners from successfully trading on the cryptocurrency exchange:
- Too high passion. Did you find a very profitable, as it seems to you, deal? Great, but you should not invest more than 20% of your deposit in it, but it is better to get by with even lower percentages while you are just starting to master trading.
- Trying to win back. Wanting to compensate for the loss of a trading day or even a week in one trade, a beginner is likely to lose even more.
- Inability to close a deal on time. If you made a mistake with the forecasts and see that the position is unsuccessful, close it. Do not wait for the situation to suddenly change in your favor.
- Lack of calculation of the ratio of risk to profit. Before you take a risky trade, consider whether the potential profit is worth the risks involved. You should not take high risks if the probability of losing a significant part of the deposit is more than 10%.
How not to lose a deposit: rules for profitable trading
Before you learn how to earn on cryptocurrency, you should learn how to save a deposit. After all, having lost your initial capital after the first few transactions, you are unlikely to be able to earn anything. The following rules help traders save their own money and get a profit:
- Trade with the trend. In the cryptocurrency market, the trend is of great importance, and going against the general trends means losing capital.
- Study analytics from different sources, but do not be guided only by the opinion of analysts. A successful trader always follows the market news and listens to the opinion of experts, at the same time he learns to analyze and make forecasts on his own.
- Learn technical analysis. This is one of the tools that will help you more confidently open deals and navigate the state of the market.
- Place stops until you have learned to control losses on your own. Use the auxiliary tools of the exchange, which automatically limit losses.
- Do not open many trades at once. While you are just learning and gaining experience, keeping track of a large number of transactions and successfully closing them will be very difficult, start small.
- Invest in different assets, but in a limited amount. Diversify your investment portfolio, but do not rush to buy a lot of different crypts at once, choose several promising assets.
To simplify your task and join trading as quickly as possible without losing your deposit, use simple and effective tools for beginners. You will be helped:
- To stop loss. The function must be activated when opening an order. It will automatically close the position if you made a mistake with the forecasts.
- To take profit. The tool will allow you to take profit from the trade at the peak that you set in advance.
- Coin Market Cap. A popular resource where you can get acquainted with the charts and capitalization of cryptocurrencies.
- CoinMarketCal. Cryptocurrency calendar, which presents important dates, events and news of the crypto industry.
The Crypto Crew team will help you quickly master these and many other trader’s tools, as well as avoid draining your deposit. After completing our training course for beginners, you will master the necessary skills for profitable and rational trading, promising investment and earning on cryptocurrency. Join the Crypto Crew to effectively manage your deposit and earn from the very first transactions!