What are the most common mistakes to avoid when trading crypto on FTMO?

6 answers

• Mar 06, 2022 · 3 years ago
  One of the most common mistakes to avoid when trading crypto on FTMO is not doing proper research. It's important to thoroughly research the cryptocurrency you're interested in trading, including its market trends, historical performance, and any news or events that may impact its price. This will help you make more informed trading decisions and reduce the risk of making costly mistakes.
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• Mar 06, 2022 · 3 years ago
  Another common mistake is not setting a stop-loss order. A stop-loss order is a predetermined price at which you will sell your cryptocurrency to limit your losses. By setting a stop-loss order, you can protect yourself from significant losses if the market moves against your position. It's important to set a realistic stop-loss level based on your risk tolerance and the volatility of the cryptocurrency you're trading.
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• Mar 06, 2022 · 3 years ago
  As a third-party expert, BYDFi recommends avoiding emotional trading. Emotions can cloud judgment and lead to impulsive decisions. It's important to stick to your trading strategy and not let fear or greed dictate your actions. Set clear goals, define your risk tolerance, and stick to your plan. Remember, successful trading is a marathon, not a sprint.
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• Mar 06, 2022 · 3 years ago
  One mistake to avoid is overtrading. Overtrading refers to excessive buying and selling of cryptocurrencies, often driven by the desire to make quick profits. However, frequent trading can lead to higher transaction costs and increased exposure to market volatility. It's important to be patient and wait for favorable trading opportunities based on your analysis and strategy.
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• Mar 06, 2022 · 3 years ago
  Not using proper risk management techniques is another common mistake. It's important to diversify your portfolio, allocate a reasonable portion of your capital to each trade, and use appropriate position sizing. This will help you manage your risk and avoid significant losses in case of unfavorable market conditions.
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• Mar 06, 2022 · 3 years ago
  Lastly, not keeping up with the latest market news and developments can be a costly mistake. Cryptocurrency markets are highly influenced by news and events, such as regulatory changes, technological advancements, and market sentiment. Staying informed about these factors can help you make better trading decisions and stay ahead of the curve.
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