The following examples are from real BitMEX traders
Those that learn from their mistakes, and from other’s, are still around to trade today.
The number one mistake is poor Risk Management.
If you really are trading for profit and not purely gambling, then protecting your capital and putting it to best use is imperative. Be sure to check out the risk management guide and calculator. ChartVampire VIP Members trading room contains risk management videos and training materials, calculators and mentorship.
Not taking into account that the market is irrational. The Bitcoin market can be volatile and doesn’t care what you think is a good price, if it should go up or down, or how much you would like to make trading Bitcoin. The good thing about this volatility is that you can profit from this with quality technical analysis, trading signals and indicators.
Not realizing that FUD (see terminology) can impact the market significantly. Due to the nature of the market, diversity of people trading and speculation, news
Basing your trades solely on signals & calls. There is nothing wrong at all in hearing other traders opinions and analysis,
Entering a trade without a clear target (exit), risk management (stop loss perhaps) or ability to monitor the trade when required. This again is akin to gambling, with very low probability of consistently being successful.
This brings us to the next mistake. Do you notice how it’s like a game of dominoes? One falls over and hits the next, continuing the collapse.
Not stopping your trade when your original reason (chart technical analysis etc.) becomes invalid. This is when the market moves in a different way than you set your trade up for. Letting a bad trade run rarely turns out
Not understanding Risk : Reward, and how important this is to becoming a successful trader. Check out the Risk Reward article.
Phew! This is exhausting! But hey…. it’s easier to make mistakes than good profits.
Being too quick to exit a trade. Remember, you already chose your exit before you entered. Your trading strategy and risk management should already have dictated where your stop is. Unless of course something out of the ordinary happens (such as an exchange expectantly going offline, major detrimental development or news. Knife catching (rushing into a trade) will rarely give a good return.
Not being focused on your trades. Distractions, trying to do your TA on your phone and rushing are a sure fire way to enter a bad trade and lose
Over trading, always having to ‘be in a trade’ and not taking a break! I’m sure that you’d agree that you would not like a boss that makes you work 24/7 and not expect you to make mistakes. You can’t lose money by not taking a bad trade.
Ok, so there are a lot more mistakes to be made. But those that take to time to trade responsibly and with knowledge are far more likely to succeed in the Bitcoin market than gamblers.
The ChartVampire VIP members trading group has been carefully designed to incorporate the best materials, videos