6 Trading Mistakes Every Beginner Do

Getting started in trading is never easy, and it is perfectly normal to go through difficult phases before questioning your strategy. Here are the worst beginner trader's mistakes that we have frequently observed when discussing with our readers.
6 Trading Mistakes every beginners do

6 Trading Mistakes Every Beginner Do

Getting started in trading is never easy, and it is perfectly normal to go through difficult phases before questioning your strategy.

Over the last two years, many people have entered cryptocurrency trading activities without any notion of technical analysis or risk management. They have lost considerable amounts of money due to trading errors.

Recent market movements lead us to remind beginner traders to keep an eye on the various indicators to avoid repeating unnecessary trading mistakes.

Here are the worst beginner trader’s trading mistakes that we have frequently observed when discussing with our readers.

1. Trade with No Stop-loss

Trading without Stop Loss is one of the riskiest trading mistakes and one of the most common ones when trading.

Always keep in mind that you won’t always be able to be in front of your screen at the right time. Stop Loss is essential to maintain control of your losses and stay in the race.

Stop Loss mistake beginner

2. Set Stop-Losses too tight

Conversely, placing a Stop Loss too tight is also a mistake in such a volatile market.

It’s common for the price to reach your Stop Loss for a short time and then move up again, which is incredibly frustrating. In crypto-trading, a Stop Loss must be low enough to play its role correctly.

too tight

3. Revenge Trading

Revenge Trading is the biggest self-destroying trading mistake for a trader.

It often happens after an unexpected loss. Trading with anger after a loss will give you a strong cognitive bias and has a high risk of failure, and they may have a snowball effect.

Each trade should be independent to avoid any bias. What is lost on the previous trade is lost forever, and you need to reset your mind. Otherwise, you put yourself at risk of having a bias.

revenge trading beginner mistakes

4. Being Overconfident

Overconfidence is often at the origin of the overactivity of the trader.

In essence, overactivity is a situation where the trader starts to take positions in a frenzy way, without really basing himself on rational criteria. He is caught in a kind of spiral from which it is difficult to escape.

This overconfidence can prevent you from perceiving all the ins and outs of a situation. Indeed, being overconfident can make you overly optimistic and irrational. As a result, you have a false vision of reality. It is the same mechanism that will have adverse effects on trading.


5. Trading Impulsively

Most of the time, the impulsive trader will get into position before he even sees a signal that fits his strategy. Often with a fear of missing out on the potential explosive price movement that could make many profits.

The problem with going back into position on price accelerations is that you will anticipate a movement when there has been no confirmation. Moreover, the result is that you are bound to come back late when the movement is already well underway. You will be hit hard by the corrective move, which will end your position with a loss.

6. Hold for extended periods

Many have also made this mistake… Hold has its limits, and we lose a lot more by trying to hold at all costs rather than following the market to make smart trades. Sometimes you have to accept to lose to bounce back!

All this seems obvious to you? And yet, many beginners have accumulated some (or even all!) of these errors by joining the crypto-ecosystem. Take the time to go at your own pace so that you can learn from each mistake. To follow our training courses in cryptocurrency trading, go here.

Good crypto-trading to all!

Recent Posts
Subscribe to the newsletter

Share this article on your social networks:

Share on twitter
Share on telegram
Share on facebook
Share on linkedin
Share on email

The information above contains information on the cryptocurrency market, which is associated with high risks. These materials are presented for informational purposes only and in no way should be construed as a recommendation for the purchase or sale of the assets. Any person considering trading digital assets should seek independent advice on the suitability of any particular digital asset.

Recent Posts

AllBlockchain & CryptocurrenciesTrading
Crypto weekly analysis

Cryptocurrency Market Review (+ VIDEO!) – 30th November

30 Nov 2020

At the time of writing, Bitcoin is today traded at around $18,500....

Read More
Are We About To See An Altseason?

Are We About To See An Altseason? Market Review 24th November

24 Nov 2020

There is no doubt we are in a bullrun, also associated with...

Read More
Bitcoin Price analysis

Bitcoin is consolidating above $16,000 and CME traps week-end shorters

16 Nov 2020

Ever heard about CME? Learn what institutions show you to trap you...

Read More
DeFi : does a decentralized organization engage its responsibility before the law ?

DeFi: does a decentralized organization engage its responsibility towards justice?

08 Nov 2020

Is it possible to engage the responsibility of a decentralized organization (especially...

Read More
Bitcoin Technical Analysis

Bitcoin Surpasses $14,000 during the weekend, the Institutions answer!

02 Nov 2020

Nothing seems to be stopping Bitcoin yet. It has been pushing above...

Read More
Bitcoin Technical Analysis

Bitcoin Technical Analysis – 26th October

26 Oct 2020

Bitcoin broke the $13,000 level last week and is currently consolidating above...

Read More

Receive a digest of Crypto Analysis, News & Articles every week

Receive the latest news

Subscribe To Our Weekly Newsletter

Get notified about new articles, analysis, courses, reviews and more!