Do not start trading if you do not have funds allocated for this!
Most newbies make a huge mistake when they start trading their last money. Make sure that you have something to pay for the apartment and food before you start trading because you must understand that this occupation will help you to become rich with the same probability that we will make bankrupt.
Focus not so much on technical analysis, but on psychology.
The market is, first of all, a large number of people, not algorithms. It is necessary to take into account the fact that very often in the movements of the market there is a human factor and not a certain programmed logic. You should look at it from two sides:
1. Trader
2. Consumer.
From the side of the trader focus on money you have. And from the consumer side — on the desire to use the product after an event that occurred on the platform of the coin.
By combining these two skills, you will achieve objective assessment of the situation and will be able to take a balanced, and often, the right decision.
Avoid Leverage
If you are making your first steps in trading, then you need to understand, that margin is very dangerous thing for you. That’s what Will Caruthers says about trading with leverage:
“However, because the scale of your trades is increased, leverage brings in three (at least three) new conditions that may or may not affect your trading.
- There’s the psychological effect dictated by your previously successful strategy. Everyone can experience different psychological effects, but any time the dollar amounts are changing beyond what you’re used to there is going to be SOME impact on your psyche.
- There’s a liquidity effect. This is going to be especially impactful if you follow a scalping strategy
- And there’s the margin call and cost to borrow effect.”
So, to start margin-trading you need to have much more experience, then you have at the beginning of your path.
Don’t pressure yourself
Sometimes our psychological state does not allow us to work fully and productively, and we begin to work despite the lack of inspiration or desire. So with trading is impossible. This is especially true at the end of the day when you are tired and your brain does not work at full capacity. It is at such moments that a person begins to make many mistakes, making incorrect conclusions about the current situation in the market. This often leads not only to the loss of profits but to complete bankruptcy and your nerves destroyed. Therefore, try to limit trading sessions in order to get the maximum profit and enjoyment from the class!
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