I have good reason to believe that most steemians here is currently or have once day traded alot of cryptos thus the reason I decided to post this.
This is not just meant to teach but also serve as a reminder to alot of us both new and old traders/investors. There are lots of mistake we all make once in a while and this should not be the case if we are putting the long term goals in mind because Eleanor Roosevelt once said '' You gain strength, courage, and confidence by every experience in which you really stop to look fear in the face. You are able to say to yourself, 'I lived through this horror. I can take the next thing that comes along''.
So I am going to be sharing while explaining the major reasons why so many day traders tend to fail including myself, these are from personal experience.
Investing without a proper or even any research/Analysis
When ever you are choosing an investment as a sole investor you should be more interested in understanding the real life uses for a coin or token. The team behind the projects and also their marketing plans. But as a day trader you should research more about the daily sales volume and margin gaps for a couple of days even though these are not constant but atleast every exchange have their best and worst trading coins which you can easily get from http://coinmarketcap.com
FOMO
FOMO is the “fear of missing out”, and unfortunately it’s the biggest trap for most new investors, but even more seasoned traders can let their emotions get the better of them and fall prey to it. Many times investors will see a coin going up in price, and they will begin to get worried thinking the upward trend will go on forever.
Most of these people end up buying in at the top, and they lose a significant portion of their capital when the coin comes crashing in my opinion waiting for dips is best.
Panic Selling
Panic selling is the ripple effect of the “fear of missing out” When you just lost a significant amount on a trade or investment the next thing that hits the mind is to sale to avoid further looses but it have already been incured and alot of capital goes with it.
I think this few tips would atleast help in it's own little way to increase your holding and give a solid profit to your capital.
This post has received a 39.9 % upvote from @boomerang.
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