Mistakes that can cost me when day trading in cryptocurrencies?

Hi Hakiza,

Day trading is an excellent trading technique in the Forex market. However, it will best suit you if you know what you are doing ad understand the crypto market well. This way, you will magnify your gains.

If you do not know how to conduct day trading with cryptos, you may make certain mistakes that will cost you a fortune.

One mistake you can do is trading using the wrong tools. You cannot employ day trading strategy with all cryptocurrencies; using crypto that does not mean this purpose may limit your success in the crypto market. Also, some crypto wallets such as the Trezor hardware wallet, although it offers adequate security for your crypto, cannot use it during day trading.

Another mistake that will cost you in this strategy is trading, depending on your emotions. Trading knowing you are frustrated because you have suffered a loss will limit your concentration and, in return, limit your chances of success. If you have made a loss, it would be best if you checked what has happened and adjust your trading strategy for better results the next time you trade.

It can be easy to enter a market position while day trading with cryptos. However, it would help if you considered how you would exit this position. Entering a position that you cant exit easily will cost you.

If you fail to check at the correct spread for your trade carefully, you may end up making losses. While checking for spreads, you see what presents itself first in the book without evaluating whether it is the price your trade presents.

Day trading is a tricky strategy and can limit the rewards you may get while trading using other trading techniques.