1. Unnecessary Trading
Overtrading or trading all the time is the quickest way to lose money and destroy your trading account. Obviously, you need to trade if you want to make any money in this business; however, new traders are often glued at their computer watching markets for 40+ hours a week out of fear that they will miss trades and not making as much money as possible which ruins their accounts quickly.
Trading too much and trading on a whim is an easy recipe for disaster. A lot of new traders learn this the hard way by wiping out their accounts or suffering pretty big losses, compounded by not having a suitable strategy to start with.
2. Create a trading Strategy
Being disciplined is the most important trait for successful trading. It might seem like an obvious statement, but it's easy to say you're going to be disciplined while trading. However, if you aren't maintaining self-discipline then overtrading and experiencing emotion during trades are inevitable which can lead to losing money.
A trading plan includes how to execute your strategy over and over again with minimal error. This requires following the steps outlined in my blog articles, which are mostly about executing a trade without letting emotions get involved.
Before you place your next trade, make sure to create a risk management and asset management plan. This includes how much money will be invested for each investment size and the amount of time that should pass before reinvesting in another position if it hasn't gone as planned yet. A usual recommendation is to stick with a fixed amount for your investment. Always risk money you can afford to lose. Risking all the accounts just because you think your trade will work out is nothing short of a disaster in making.
We want to avoid trading emotionally. Trading is about being disciplined and staying within our limits, which will prevent us from inviting emotion into the picture. Nobody wants that!
If you have a trading plan that includes rules, then it can be helpful to adhere to them even when things get tough. For example, if your rule is “losing two trades in a row, you won’t trade for the day," and this actually will happen during some difficult times in the market and you must then follow through! Don't give up because of one bad day; instead, use these negative results from previous days' losses as lessons learned about what not to do next time around.
3. Take help at the beginning
New traders can find it difficult to earn profits from cryptocurrency investing because of a lack of understanding. However, people who have just started their trading journey and are looking for reliable signal services may be able to make money as there is still interest in this kind of investment.
Crypto signals are more about giving you an idea to make decisions on which coin is best rather than telling you the perfect trade. For example, if I know that Bitcoin currently has strong support at $10,000 and my prediction for where it will be in ten minutes is between $9,500-$11,000 then using a crypto trading signal would help me decide whether or not an opportunity exists within this window of time.
This will help you understand how professionals trade and what they take into consideration when generating crypto signals for their members.
4. Asset and Timeframe
It is recommended to go with a familiar asset before beginning to trade them live. This way, the risk of making mistakes is limited and it allows for much better results in your binary options trades! Also, never trade multiple assets with multiple timeframes. Make a discipline
When choosing the highest paying assets your broker has to offer, be sure that you're considering assets that fit with personal trading preferences such as volatility and price action.
When choosing a timeframe, consider your trading strategy. Some short-term traders like to use 1-minute charts and others prefer 5 minutes while some stay with 1 hourly or 4 hourly TF. Many combine both chart types for their trades with common expiries of 10 or 15 minutes that cover at least one price candlestick on the shorter timeframes if they are using an expiration longer than those durations. Stepping down one or two TF is helpful. For example, a small move on 1-hour TF will amount to a bigger move on a smaller TF like 5 minutes.
5. Keep Learning and Improvising
Education is the key to success, and this can be seen in trading. What differentiates a beginner from an expert trader? Experience and knowledge. Backed by education, traders gain more confidence when it comes to making decisions that affect their money! There are endless resources available online for you to learn about new techniques or strategies related to trading - start learning today!
The Internet is a great resource for trading. There are many books that can provide technical analysis assistance, strategy inspiration, and more! Then there are always crypto trading signals providers who help you learn and understand trade mechanics.
Successful traders and investors have years/decades of experience behind them. The very best almost always put in the required effort, are consistent, and demonstrate self-discipline to achieve success.