What traps do beginners fall into?

By hsi007 | irinavasilenko | 10 Apr 2021

Almost all new traders fall into the same traps, because the first success turns their heads and euphoria begins. For this reason, they suffer the first setbacks and quickly become disillusioned with trading. In this article, I propose to consider the main mistakes of novice traders to protect you from failure.

The market is not a gambling game

The first, and one of the most common mistakes among beginners can be considered a frivolous attitude to trading. Many people believe that success will always accompany them and trading does not require knowledge of technical analysis, experience, and stress tolerance.

With this attitude to trading, you can not count on success, because yes, sometimes you are really lucky, and then you will lose 10 times. An exchange is not a casino or a gambling game, where everything is decided by combinations of random numbers.

In order not to succumb to vague impulses, experts advise you to first think about why the position should not be opened, and then make a decision. If there are more arguments in favor of a good profit and the risks are minimal, then you can act. If not , you need to wait for a better moment.

Haste is the worst enemy in trading

Another fairly common problem for beginners is excessive haste. They can't stand the psychological pressure and place sell orders too early. As a result, where you need to go to get a normal profit, they get a minimum income or even go into negative territory.

A similar situation occurs during the purchase of coins. Instead of looking carefully at the charts for the last day, week and analyze the situation, beginners just buy coins, without thinking how profitable it is. Then many people can not sell the token at the entry price and lose not only time, but also money.

Others sell and I will sell

Novice traders can not make independent decisions, so they are guided by other market participants and various forecasts. But do not forget that the forecasts are made by the same traders, who can also make mistakes, And if someone starts to merge the token, it does not mean that you need to hurry and repeat after him.

In addition to all of the above, many beginners have a problem with the perception of the first failures. Instead of drawing conclusions and not repeating their mistakes, they randomly place order after order, trying to cover their losses.

Do not give in to such emotional impulses and take trading lightly, because this is a direct way to get lost and lose your money. I hope this article was useful thank you friends for your attention.

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I'm 32 years old. I work as a freelancer and earn extra money trading on cryptocurrency exchanges. I am fond of drawing and photography.


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