Don’t Make this 7 Mistakes When Trading Crypto & ForexKehinde LAWAL
Good Day my wonderful readers, hope your week is going on fine.
In this video, I discussed the 7 common mistakes people make when trading Crypto & Forex. I hope you will find them insightful.
Don’t Make this 7 Mistakes When Trading Crypto & Forex
- Not using stop-loss order: Stop loss order is the best way to manage risk and avoid loosing a huge amount of your capital. However, people tend to overlook it and trade without any method of managing risk.
- Trading with your full capital: Many people make the mistake of using their whole capital on a single trade. That is very wrong. You must avoid it simply because, any single loss will affect the whole capital. I advice you split your capital into 4 folds, and don’t use more that 1 fold on a single trade.
- Not cashing out profit: A lot of people just trade and never withdraw profit. This is very bad because adding all the profit to your capital to trade will make your capital more vulnerable big loss, in case of a loosing trade. I advise you set 50% of your profit aside, so you can enter the market in case of any DIP(sharp drop in prices).
- Not checking order form correctly: On many occasions, I have been guilty of not checking my order form clearly. And the result is executing a trade and noticing the trade parameters(Quantity & Price) were wrong.
- Always eager to trade: Trading successfully do involve knowing how to control fear and greed. If you can’t control your greed and you just have this frequent urge to put in money to a trade, you might lose a huge amount of your capital.
- Day Trading: This quite similar to the 5th point and it simply means you have turned trading into a day job. Day traders are also called active traders. They usually get in and out of a trade after any feasible profit. It’s very dangerous in a bear market (a market which all prices are falling), and it also has some health hazards.
- Liquidity: This simply means how soon can you liquidate your portfolio into your local FIAT currency. Trading on exchanges with low liquidity is dangerous because such market are easily manipulated.
What are your thoughts?
Thanks for reading this article! If you trade Crypto & Forex, share your experience in the comment box below.