If you want to be truly successful with your trading endeavors, avoid the following mistakes by all means:
Not having enough understanding of digital currencies and blockchain
Truthfully, no mistake is bigger than this. Successful traders, regardless of their area of expertise be it, The Stock Market, Forex, Cryptocurrency, or any other similar realms you could think of having this thing that they call their “domain of confidence.” As they go about what they do like choosing new forms of investments, collaborating with like-minded people, and making decisions, they stay in that domain.
As they stay within that area of business where they plan to make huge amounts of income, they do their very best to learn about it because they know for themselves that the best way to be successful with the business, you have to really understand how the structure of the business works.
Most online trading newbies approach the business as just a simple piece of object that they can plug themselves into and hope that money will just flow through their wallets. Such people think that by simply sticking themselves into the business without doing anything, they can get rich easily. If you’re that type of person, then there’s no hope for you as a cryptocurrency investor.
So the main emphasis of this first item is that before you proceed with the real mechanisms of crypto-investing, do your homework and do some reconnaissance like that of a highly trained assassin. Although you won’t be killing anybody within the business, you really need to truly grasp and understand what is cryptocurrency, and how it really works.
Not having a solid and actionable plan
Since trading is a very serious undertaking, you need to really come up with a solid plan and have the guts and the rock-solid willingness to put those plans into action. The natural reaction for novice investors when hearing about something that can increase their income is this: they put in some money, expect it to grow, and just wait for that quick moment in which they can siphon their earnings into their wallets and bank accounts.
Many newbie investors are having that mindset within themselves, and it is exactly why most of them fail miserably. Some of them also think about retiring early, having some passive income generators, and doing things just to enjoy themselves.
While such plans are good things to execute, it would be a really bad idea to just think about that end scenario without really laying out some solid plans. Some of them don’t even think deeply about the proper amounts of money that they need for those plans, thinking that things will just fall into place automatically.
Most newbie investors in cryptocurrency are too excited about the money they can earn and are willing to trek into new money-making territory like blind men walking near a cliff. Such a notion is really bad and not to mention a very dangerous idea. So here’s what you should do, take a pen and a paper, write down your plans, think about them deeply, and take intense and strategic actions in doing them when you are ready enough already.
Unwillingness to invest time in learning crucial trading concepts
All things exist because of 2 important elements: space and time. Ask any physicist, and all of them would surely agree with the statement. Income is a very good thing to have, no argument about that. But thinking about income and actually having income are 2 very different things.
No matter how good you are at dreaming about the physical objects that you can buy with your income, and about how you will store those piles of income, all such thinking and planning will not amount to anything if you don’t invest in a very crucial element: time.
Cryptocurrency trading is one of the most sought-after activities conducted and engaged in by the richest people in the world today. Do you want to know why they’re so good and why they’re so successful at what they do? It is because they put a lot of time into learning about the thing, and doing the thing constantly and repeatedly until they become masters at the art of trading and investing within the cryptocurrency game.
Successful traders do not only invest in money matters, but they also invest in time because they want to learn. The good thing about crypto-investing is that it’s never too late for anyone to start investing. Even if you’re already past your prime or even if you’re within the “senior age bracket,” you can still have a profitable trading journey ahead of you.
You might not be as young and energetic as those teenagers who are now getting so good within the likes of Bitcoin Cash (Yes, there are very successful youngsters in their late teens who are well-known within the crypto-market.), but you have one decisive power that those kids don’t have: the wisdom of an experienced senior.
Even though you are not yet well-versed with the art of trading currencies yet, you are most likely experienced with other things from other areas of life. You can then apply those experiences in your trading undertakings. Those kids might have the energy, but you have the advantage of wisdom and experience as you have lived certainly longer than all of them.
Doing a lot of wrongful buying/trading practices
Everyone makes mistakes. And in order to really learn, it is understood that errors and wrong decisions will be made along the way. But if you can prevent those errors from taking place in the first place, why not utilize such an advantage? This is something that most crypto newbies should really put into the highest of considerations.
When you are about to embark on your first trading steps, you will surely be lured and tempted to buy currency pairings that appear to be very cheap but are actually so overpriced. For instance, when looking at candlestick charts, which you will surely do if you want to get serious with the business, you might see the rise and fall of monetary value in an erroneous way.
Oftentimes, newbies would surely get excited when there is a sudden rise of a particular currency when compared to another currency and will quickly jump into the trading act, not realizing that they could earn a lot more, if they waited for just a longer bit of time.
Conversely, one of the most common mistakes among newbies is the desire to earn more when the rise of a currency’s value is actually the highest that it can get at a given moment. The trick to getting around to this is to play within the mid-level approach: don’t get too greedy, but don’t be too quick either.
To simply put it, invest in ample time to learn the basics, and improve on them with thorough practice. As you do them more and more each time, you will have the wisdom that can be equated with the most successful cryptocurrency traders within the market today.
