What's up guys and welcome back to another video in today's? Video, I'm gonna, be talking all about trading mistakes as a beginner and in this video I'm gonna be bringing you my top five trading mistakes you will make as a beginner.
Now these mistakes are pretty personal, as I've made them before, and I'm sure many of you guys have already made them or you're in the process of making them. So I thought it'd, be good to make this video just to bring you your attention on awareness of these mistakes, and hopefully it can save you a bit of money or make you a bit of profit in your next trade.
This whole start out by quickly. Looking at the market, we can see, we've had a pretty decent sell-off. We can see the complete down spikes here, pretty much everything apart from probably tron, which is still selling off, but if I'd, had a massive pump so pretty much the markets, aren't looking too great right now, we are coming To a pretty key 200 week, moving average point where last time before the bull run in 2017, Bitcoin did actually turn around from this point.
When it touched the 200 week moving average, it felt below it a little bit and then peaked, and then we had the massive price action. So hopefully Bitcoin doesn't fall much lower than it is now, as that could be pretty kind of.
Yet not great, but taking a look at the market today it's, pretty red. I mean we're, pretty used to that this. If you & # 39, ve been in crypto for a while, you're, pretty used to these red days with 10 % and more definitely not a traditional market.
That is for sure, and I can see why people say it's. Very volatile, although taking a look at the volume, the volume is in fact pretty high, with the volume being at 20, that's, actually pretty high, and previously, when we had a small pump, the volumes are about 21 22.
So that's, really a key indicator guys definitely keep a look on the 24-hour volume. The BTC dominance is pretty much the same. The market cap is very similar. All things they're, looking pretty similar apart from the volume which is a little higher than usual so getting on into today's.
Video today's. Video. I'm talking about five trading mistakes that beginners make when at trading now. The first mistake I'm gonna tell you about is getting rich, quick, a lot of people. Messaged me saying: okay Jack! I have a thousand dollars.
How much can I make? Can I make two thousand dollars this month, guys chill you really it's, not a get-rich-quick kind of kind of kind of way to think about it. Yes, you can make good passive income or replace your full-time income eventually, but not in the space of a few weeks or a month.
It's gonna take time it's. Gon na take you to understand the markets to understand what trading techniques work for you and work best for the trading pairs that you are you're in fact trading. So there's, so many different things that come into play.
Not just I'm gonna get rich, quick, a lot of people think if they open a balanced account with five hundred dollars worth of Bitcoin. The first few trades they're gonna have 10k. Not realistically is not going to happen.
I know a lot of you guys who watch my videos aren't on that stupid, but I thought I'd. Add this to the list just because maybe someone knew me may come in and think that our trading is a great way to get rich.
Yes, you can't potentially get rich in the in the future, but not right away. You & # 39. Ve really got to learn the key principles you've got to learn what works best for you and you & # 39. Ve got to be disciplined very, very disciplined, so that's.
The first one and getting rich, quick, the second one, is over trading. Now, when you log onto by Nance - and you see all these coins here and you see - some are down: 10 % 6 %. You go on the other one waves, you stock 20 %.
You links up 10 %, so many different ones, steams up 4 %. You think holy moly, that's. A lot of coins that's, a lot of profit I could be making if I just trade three four times a day for every day, for a month I'll have $ 2,000 and then at the end of the year, I Have 25, maybe 30 thousand shell, it doesn't work like that when you, when you first start out trading, you should really only be making one trade a day maximum maximum, and this is gonna tie into my my third point.
I'll, explain that in just a second. So when you first start out really, you should only be trading one per day. If that's a profit great. If that's, a loss great, you can learn from it and move on to the next day trade and see and see.
In fact, what that's, gonna bring you so one trade per day is really where I would cap it. When you're a beginner, even me myself, I only trade warm today. I I don't want to over trade. I'd, be overextended.
That brings us nicely into 0.3 when you are doing your one trade a day you don't want to be overextended in that trade. Let's, say, for example, you have a thousand dollars to trade with you think great.
If I put a thousand dollars in, I make ten percent profit that's; a hundred dollars. Okay, that's great. That's, a good good, good way of thinking and definitely 10 percent in a trade is an amazing profit.
But what happens if that proc? If that trade goes goes south and it the market drops and you haven't set a stop loss for whatever reason that will be number. That'll, be number three for three point: four, but you haven't set a stop loss and you lose 30 % of your holdings.
Now what it's smart to do when you're first, when you first start trading, is only trade one today and do not be overextended. What do I mean by that don't trade with every single penny? You have, if you & # 39.
Ve got a thousand dollars to trade with. I would highly recommend not trading with all of that money, starting out with even a hundred dollars, even fifty dollars, starting out with and just getting the key principles.
One trade per day, or if you're just trading with fifty dollars, you can probably do more trades than one a day. You could probably do two or three, since if that's, not a lot of money to you. Obviously, no one likes money, but you can kind of play with the $ 50 and you're, not devastated.
If you lose it compared to losing a thousand dollars which would be yeah pretty dire so that pretty much one trade a day. If you're, if you're, if you're trading with real capital or if you're trading with less amount of money, then definitely you can do more trades to help grow.
Your experience. Moving on to point number four would be stop losses when you guys are trading, do not even think about trading with our stop loss. Just don't think about it. You have to be trading with a stop loss.
If you don't know what a stop loss is it's, basically a an amount you set on the chart or on the your exchange. Sorry. So if it crosses that point, the exchange will go ahead and put a market order and sell sell at the next best price.
So, for example, if you put a stop loss at 786, Satoshi's right now. If, if the market falls below this, your stop loss will be triggered out onto our market sell and it will sell for the next press that's, how most exchanges work anyway, so you really need to be setting a stop-loss when you're trading, it's unless you want to be losing 20 30 40 percent in your portfolio.
I highly recommend a stop loss. Now. How much is you step set your stop loss before for sorry? Well, that really depends on your risk reward ratio. To be honest, I like to have a stop loss, no more than like two to three percent, but if we are very, very close to a level which we're going down to, this is gonna.
Be a really really rough example, as I'm, just pulled up Tron but say, for example, we have say, for example, we are here don't. Let me put an arrow, let's, say, for example, we are here. The price level is here, let me draw the line on us or how the price level is exactly here and we we don't know what's gonna happen.
We don't know if the market is gonna go up. We don't know if the markets gonna go down. So what we want to do is we want to set a stop loss, so you could potentially look back and say: okay, where do these candle wicks extend to okay, they extended to down here on 713 Satoshi's? This one is 718 Satoshi's, so we could in fact go ahead and set our stop loss for around.
If you wanted to be safe, you could set it below this candle work here, but I & # 39. Ll, probably set it to around. Here ish, which is about 715 Satoshi's, so what that does is it ensures you've got a little bit of leeway when you're trading, just to make sure that you don't in fact, Go ahead and make a loss, so this will be a run.
A 1 % of 1 % stop-loss, which is pretty fair and considering these levels, are pretty close, so definitely go ahead and trade with the stop-loss that is a given. And if you do want to be able to trade with the stop-loss and to have a take profit, you're, going to be hafta.
You're, going to have to use a third party integration like three commas. Now three commas allows you to set a set profit, a take, profit, sorry and a stop loss. When you're using buy Nance, you can only set a stop loss or a take profit, so you can either have your money safe but miss out on the profit or money.
Isn't safe, but you can get some profit potentially. So three commas allows you to do both: have a stop loss and have a take profit. So both ways if the maquis goes up or down, you are covered and there'll, be a free ten dollar.
I believe trial or something like that in the description, so definitely click that link to help the channel out and start trading with three commas. So if you haven & # 39, t already checked out the Bitcoin blueprint and the trade calls definitely check that out.
The link is down below in the description it's, basically an 8 as it guide of how to make an income with cryptocurrency. Now, accepting payment with crypto right from the website or Bitcoin litecoin, BCH and etherium same of the trade calls 49 bucks per month.
They are included free with the Bitcoin blueprint, but if you didn & # 39, t want to buy the blueprint. The trade calls are here, and I now accept crypto for this, but I & # 39. Ve got to charge 3 months up front, so I'll, be 147 dollars for 3 months as there's.
No, I don't, have a smart contract or anything to monthly bill. The trade calls so it's, definitely nice to have crypto added there on the page and yeah getting into the final point. The final point, isten is not taking profit, or do I mean by this now let's say you are in a trade.
For example, let's, use Tron as a relevant point. Let's, say, for example, you're in a trade and you entered. I use the arrow here for the enter. Let's say you entered let's say you entered here on this level.
So you're entered here. I'll draw this line to show entry change the color to green for entry, so we entered here on this price a lot right here now we see the market go down a little bit. That's. Fine, we've done our calculations.
We & # 39. Ve checked our indicators. We know. Potentially, the market may go up, however, the market pumps up to around here when it pumps up here the it starts kind of you - can see the candle wick in fact getting smaller.
You can see we have long candlesticks here long and they get shorter, shorter, shorter. When the candlesticks start to get shorter, that generally indicates that we are having us, the price is slowing down and we could be potentially turning around or leveling off now.
Personally, that would be a good place to sell, not knowing, of course, that it increased in price. After that, but if we were to sell there, that would be a steady 7 % profit now 7 % profit in the space of a day and a half is definitely good in anyone's book.
Anyone would take that profit. However, you could maybe have got greedy and kept on going and yeah. That would have been great, but the price does in fact fall below here. So you really have to be careful, and one thing I'm gonna give you as a tip, is if you're in profit, and you're happy with it.
Take it not only that, but before the trade you have to outline okay when it hits this profit, I'm, taking it when it hits this stop-loss. I'm, cutting my ties and selling it out line that before you enter the trade.
This way you can completely remove emotions and just focus on merely trading. That is probably going to be one of the best tips you can have from this. Video is it take profit when you can, even if you're here and you're, the four or five percent profit, a four or five percent profit.
When you're starting out, is freaking phenomenal. Take it don't, let it sit there and turning to a two percent loss that's, going to be pretty much. My number one point of the video so recapping the point at the points we've got you're, not going to get rich, quick don't over trade.
One trade per day, don't, go all in on that one trade maybe have a portfolio set aside and then have a trading account with some money in it. Stop-Loss do not be trading without a stop loss. You can use three commas if you want to use a stop loss and take profit and, finally, five not taking profit, make sure you take a profit.
You worked hard for the trade for the analysis and the indicators take some profit when you can thanks for watching guys if you haven't already, please check out the trade calls and the blueprint which is linked down in the description below, and I'll cut you in the next video [ Music, ], [, Music, ], [, Music, ]