Hey guys!
because I know that the term "trade" is used very quickly these days, if someone buys one coin in crypto, please check my introduceyourself-post to see how i made my way from working 9 years in a bank will today!
"The smartest person is the one, who learns from the mistakes of others"
Be smarter then me and learn from the following mistakes!
Part 1:
play too high ammounts or use too high leverages
I learned about 100 hours of theory through Youtube videos and books. Then I was sure, now I will become a millionaire in a few weeks :-)
Full of motivation, I sat down in front of the chart and traded the first idea I had (without great analysis, because I am now a professional). Well, the first trades were not successful. Either I put a stop too tight or I dindn't realized my profits ....
Most trading sites offer margin trading. That means you can act up to 100 times of the ammount you deposited (margin). In my case I deposited at the beginning of a margin of € 1000, - to make my first experiences.
That means that I could bet up to € 100,000, which of course only makes you crazy!
My first trades were not very successful and I really quickly lost € 100, -! I thought, I increase the ammount of the trades so that I can get back the loss faster :-)
Before I realized, I was in a trade with € 5,000, - This trade developed not very good and just before my stop (which I would have lost € 100, -) I thought: I'm sure I'm right and increased my trade to € 10,000, -.
The result: On my first trading day, I lost € 550, - and suddenly had a position with € 10,000, - !?!?
In retrospect, of course, you know that this is nonsense, but in the situation you do not think clearly!
The moral of the story: discipline is everything! Write down basic rules and follow them and do not overrule them!
FOMO (fear of missing out) or the fear of missing something.
My "favorite fear" :-)) certainly know many of you, if you have already made your experiences in the stock market or in crypto area.
The term describes nothing more than if you have been watching a share or a cryptocurrency for some time. You learned something about the company and checked the business reports and decided to buy this share (or coin) at the next short drop.
So far so good...
Now let's take Ripple (XRP, 3rd largest cryptocurrency) as an example from the recent past: Ripple ranged from $ 0.16 to $ 0.25 from August through September 2017. And then it started:
The price shot in early December to 0.75 USD. Here some have already thought, wow what an increase, have informed and regret not having bought it earlier.
The next increase around the 17.12. around to 1.19 USD - Those who have informed, are getting nervous
The price is $ 2.75 around the turn of the year. Here you actually conclude with it and think the price is too high now for me
The first setback to $ 2.13 and everyone is thinking, "I knew it, now I'm waiting for $ 1 and buy"
The price exploded again, this time to $ 3.75 and everyone is thinking, "It's unstoppable, buy fast before I miss even more !!!"
Why am I telling you this? The price is now back to $ 0.90 and many have lost some money ...
Of course it has happened to me a few times :-)
The moral of the story: Do not follow a trend, either you are immediately or not, jumping too late often brings only losses
The next days a new chapter is comming.
I hope you enjoyed the story. If something like this happened to you or you have another story to tell, just write it in the comments, I'm very interested and maybe i can learn from your mistakes :-))
Best greetings from Austria
the fox
Hey @tradingfuchs, great info on Bitcoin! Thanks for sharing. The markets are fun right now and it's great to have the updates from good content here on Steemit. Cheers!