Just like in football, mistakes lead to a goal from the opponents. Similarly, in crypto exchange trading particularly, futures trading, a mistake of any form could lead to you losing your entire capital or part of your capital.
Thus, it becomes highly imperative that traders note these common mistakes and then deliberately work towards avoiding me as they often lead to losses.
Trading too often
If there's one thing I know about expert traders is that they don't trade too often rather they just wait for the right time to enter the market. Just one dip can give the returns they need. Trading too often is not a good idea rather one should first, observe and analysis the market before entering. Trading too often doesn't give you time to carry out appropriate analysis so, when you trade too often, you are bound to record some losses.
Not Cutting Losses
Some time ago, I LONGED zil/usdt on binance futures without careful observing that it had pumped for a long time and did also reach a recent all-time high. As guessed, the coin began dipping, it dipped to a point where I was only to lose a dollar if I closed position but I was still being stubborn and hopeful that it would find it's way back up. So, I didn't close position but the coin was still dipping as the selling depth kept increasing.
It then got to a point where I would have only lost $3 but I was still proving stubborn even when all odds were against me. Finally, I lost $4.87 because the coin was began and maintained a steady downward trend. I would have cut the loss had I closed position earlier on. So, as traders, one needs to be very observant, knowing when to enter and also knowing when to exit in order to cut losses. Losing a dollar is better than losing $10.
Following other traders blindly
No one can truly predict cryptocurrency movements hence, we should not blindly follow others. Ensure to carry out your own research and trade wisely. Do not be over-dependent on people's signals because analysis isn't foolproof. Anything can happen at anytime. To blindly follow other traders, is to follow whatever signal the said trader drops without considering it yourself. This too can lead to losses.
I hope you found this useful!
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