While you are Trading and Investing in the Cryptocurrency, you are in a psychological war with your inner self. And to win this war, you need to have extreme mental discipline. It is this discipline that helps the traders to keep themself calm even in a volatile market.
And if you really want to improve your cryptocurrency trade decision-making capabilities then you might also need to add mental fortitude alongside mental discipline. Only when you have both, you will be able to reach a point where you will be able to make the most difficult decision with ease.
When you are in the trading market, more precisely in the Cryptocurrency trade market, you need only one thing, correct decision-making capabilities. And the importance of the correct decision-making capabilities increases when the market is facing a crisis. You can not hope for making even the slightest mistake.
Here are a few mistakes that can be your last mistake in the Cryptocurrency trade.
1. Do Not Try to Catch The Exact Bottom
It is very important to know where your limit lies. Without knowing your limit, you might over-commit with the investment and end of accruing a huge loss. This has happened to many traders and investors. In a hope of reaching the exact bottom of the trade and then buying Cryptocurrency. This can backfire in numerous ways. It might happen that the bottom you were hoping for never reached, instead the trade graph starts improving itself leaving you with a small margin of profit.
If you are trying to reach the exact bottom to enter the trade then the chances are, you might miss the golden opportunity to make a high margin profit. To overcome this scenario, it is advisable that you set margins for your trade. This margin will help you to not overcommit with losses.
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2. Don’t Sell Your Coins Which Are Going Up
In the Cryptocurrency trading world, it is a common occurrence where the moment you sell your coins the value of the coins increases. Every trader has faced this kind of circumstance in their trading career.
It is one of the cases that make you think that you are one of the unluckiest traders. So, it is important to have a clear understanding of the market and the current turbulence before you sell off all your Crypto assets.
Let’s portrait a scenario to have a clear understanding of this situation. Let’s say you bought a Bitcoin at $9000. You have studied the charts very well and you are sure of one thing that these next few weeks will bear the fruits of profit. You waited patiently for 2 weeks, there have been no significant changes that can help you make profits.
You waited for 2 more weeks, finally, there has been a change in the price of the bitcoin. But the change is negative. The current price of the bitcoin is around $8500. This created a panic and you sold then off. But the moment you sold them, you noticed that the price of the Bitcoins started increasing and at the end of the day, the trade market for the Bitcoins stop at $10,500.
This kind of scenario happens all the time in the trade market. So, make sure that you are not the person that is mentioned above in the example.
The Final Mistake
Really, the worst mistake that anyone can make is to aimlessly stare at the trading screen the whole day without doing any trades. Yes, it is important to study the demography of the trade market, but it only helps you when you are in the cryptocurrency trade market for a long-term investment.
If you are in the Cryptocurrency trade market for short term investment, then you really don’t have to read the whole chart, just the short timeline will do the job.
Chris Mcdonald has been the lead news writer at complete connection. His passion for helping people in all aspects of online marketing flows through in the expert industry coverage he provides. Chris is also an author of tech blog Area19delegate. He likes spending his time with family, studying martial arts and plucking fat bass guitar strings.