Common Mistakes in Futures or Leverage Trading in Crypto: A Noob Trader

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Since last year I have tried to enter the world of trading, and it's not an easy thing to do. You have to understand a lot of things before you master them.

Trading is a complex matter to understand, it needs a deep understanding, more time to practice, and a lot of DYOR before it must be executed. Trading comes with understanding the candlestick, indicators, learning technical analysis, and the fundamental of certain assets one wants to trade. It is not a one-day game to play, one must possess a lot of patience and more time to learn it.

Until now, I am still a noob trader, and here are the mistakes I found while doing it;

Not learning the basics

• If you want to learn to trade, you should start learning the basics such as reading charts, candlesticks, and plotting support and resistance. If trade without knowing those things then probably you will lose the trade, I am like this before just trading without knowing the basics and I lose money by doing it.

Following Signals given by Telegram Channels

• There are a lot of telegram channels that give a free signal, if you trade without validating the signal if it's a good call or not then you will likely lose the trade. Last year I was very hype to trade on leverage just following some signals given without validating it, I always got rekt you know.

Using high leverage

• Leverage is the multiplier, the higher the leverage the higher risk which also comes with high rewards if you win the trade. But the problem is that when your position goes against the market trends, you get rekt easily just by small movements of the candlesticks.

Greediness

• Greed is one of the enemies of a trader it's a psychological matter when you are trading, wanting more instead of taking profit until the sudden change of price trends come in, ending a wrong exit of trades. I always experience this one waiting more to pump then it went negative, ending I cutlass instead of booking gains lol.

Not using stop loss

• In trading, it is advisable to always use stop-loss, in case the trade goes wrong you will not all of your margin capital or your whole capital if you are in the cross margin. Using stop loss is a must. I always don't use stop-loss before because I am usually a scalper but still got rekt especially if I am trading with a very volatile coin pair.

Weak Hands

• Weak hands are that you exit the trade immediately when you started to see greens thinking it will go red again, not basing on the current price trends. Instead of gaining a good amount of profit, you will only gain a little because weak hands are holding you back.

Riding dildo or chasing entry

• Dildo are big candlestick which means high buying or selling pressure. Mostly noobs chase an entry even if it flies or go down already. Ending they are left at the top or the bottom then got rekt. This is some, so I stopped it already.

Closing Thoughts

Those are the common mistakes I've done during my leverage trading journey, as of now I am learning how to do it properly and enter trade seldomly making sure it's a win-win trade.

That's all thank you for reading this noob trader insight!

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