One of the main problems is trading on emotions. Each trader have to make the mark in a prominent place with the rule: “We earn, when we stay disciplined.” When you do everything right, but it loses, it affects you emotionally.
You get upset, angry, become more emotional, and because of this less disciplined and make more mistakes. This is a kind of spiral, that twists until the coins in your pouch don’t stop ringing. Keep your emotions in the box, if you don’t know how to use them.
Yes, emotions can be used correctly. Emotions allow gambling traders to be more efficient. They want to win, and this stimulates their activity. But in general, you need to control your emotions in crypto currency exchange trading.
Here is an example of a common mistake that is made on emotions. Imagine that you bought coin at a high price, and it began to fall quickly. You understand that you lost at this moment, but you don’t want to drop the deposit and fix the loss. You falsely hope for some unpredictable growth. This means that you are acting in a rational way. You should be guided by only one thought: “Is the open position optimal in terms of the ratio of profitability to risk? Does it fit the strategy? ”. If not, cut the rope. On Wall Street there is a saying “The best loss is a quick loss”.
When you are afraid of fixing a loss and sitting in one losing position, you lose the opportunity to make money on another growing trend that can compensate for the loss and make a profit. This behavior leads to a deterioration in your results.