What are the common mistakes to avoid when measuring pips on TradingView for cryptocurrency trading?

2 answers

• Dec 17, 2021 · 3 years ago
  When measuring pips on TradingView for cryptocurrency trading, it's crucial to avoid the mistake of not considering the spread. The spread is the difference between the bid and ask price, and it can significantly impact the profitability of a trade. Traders should factor in the spread when measuring pips to get a more accurate representation of their potential profits or losses. Another common mistake is not adjusting for leverage. Leverage can amplify both profits and losses, and failing to account for it when measuring pips can lead to misleading results. Traders should always consider the leverage used in their trades and adjust their pip measurements accordingly. Additionally, it's important to avoid measuring pips based on unreliable data sources. Traders should ensure that they are using accurate and up-to-date data from reputable sources to make informed decisions. Relying on inaccurate data can lead to incorrect pip measurements and potentially costly trading mistakes.
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• Dec 17, 2021 · 3 years ago
  When measuring pips on TradingView for cryptocurrency trading, it's important to avoid the mistake of not considering slippage. Slippage refers to the difference between the expected price of a trade and the actual price at which the trade is executed. It can occur during periods of high volatility or low liquidity and can impact the accuracy of pip measurements. Traders should factor in potential slippage when measuring pips to get a more realistic view of their trading performance. Another common mistake is not adjusting for fees. Trading cryptocurrency often involves transaction fees, and failing to account for them when measuring pips can lead to inaccurate profitability calculations. Traders should consider the fees associated with their trades and adjust their pip measurements accordingly. Lastly, it's important to avoid relying solely on pip measurements when making trading decisions. Pips are just one aspect of a trade, and traders should consider other factors such as trend analysis, support and resistance levels, and market sentiment to make well-informed trading decisions.
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