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Every experienced and successful trader was once a beginner with a small starting deposit, made mistakes, on which he learned and improved his trading strategy. It was not easy for the pioneers in the world of crypto trading, because the sphere is not only new, but also with the highest volatility and associated risks. Today, it is easier for newcomers to cryptocurrency trading, a lot of training courses and a community have appeared for them, where experienced market players share secrets and recommendations. Despite the large amount of information in the public domain, the habits of beginners, which often lead to losses, do not change. Check them out to avoid mistakes and trade crypto profitably!
TOP 5 newbie habits
It is not difficult to distinguish a beginner from a successful and experienced player in the cryptocurrency market. TOP habits for beginners looks like this:
- Invest more than he can afford. This is a common habit and blunder. You need to invest in crypto exactly as much as you can afford to lose painlessly for the budget.
- Act emotionally. Beginners want to join the cryptosphere as quickly as possible, so they often act thoughtlessly, open a large number of transactions at the same time, try to win back in case of failure, their actions are chaotic due to the lack of a clear strategy.
- Act without risk management. It is not worth starting crypto trading without drawing up your own risk management plan. You must determine what percentage of the deposit you can afford to lose on a trade, within a single day, week and month.
- Buying new cheap and untested assets. After reading about a promising new coin that can be bought for a penny, a beginner is in a hurry to buy as much as possible. Why not, if once Bitcoin was practically worthless? But today there are more than 10,000 different cryptocurrencies on the market, so you need to approach investing seriously, studying different sources.
- Do not keep a trader’s diary. Daily entries help the trader track his dynamics, analyze the effectiveness of the strategy and work on the mistakes. It is especially important to keep a diary for a novice trader.
TOP 5 Habits of Experienced TradersExperienced traders also make mistakes from time to time that cost them a significant part of the deposit. But what distinguishes them from beginners is the ability to learn from their own failures, flexibility and understanding of how to improve a trading strategy in order to avoid similar mistakes in the future.
Habits of Experienced Traders:
- Portfolio diversification. A successful investor and trader invests in different coins, choosing promising and positive assets.
- Stop Losses. If a trader is actively working on the exchange, he uses stop losses. Automatic closing of positions in case of negative exchange rate changes helps to avoid big losses.
- Discipline. An experienced exchange player approaches trading as a job, not a hobby. He allocates a certain time for trading, does not forget about the rest.
- Strict adherence to the chosen strategy. Having drawn up risk management and money management plans, a successful trader develops his own trading strategy and sticks to it. He determines in advance under what conditions the strategy will need to be changed, and only when these conditions are met, he revises the action plan.
- Conducting marketing research. A professional always follows trends and world news in the cryptosphere, he is aware of the latest political and economic news affecting the cryptocurrency market, he knows how to analyze information, so the crypto market, despite its volatility, is not too unpredictable for him.
How can a beginner become an experienced trader?
There are no secrets and special tactics that will make a beginner a professional in trading. Only training and practice will help you go from a beginner to a successful player on a crypto exchange. Get trained in Crypto Crew and join our first cryptocurrency community in Ukraine! Together with our team, you will master the basic skills of a trader, learn how to analyze data and act independently on the stock exchange without succumbing to emotions.