1. Never buy on the rise:
When a currency rises sharply and quickly, it is often driven by emotional buying or FOMO (fear of missing out). Entering at the tops can expose you to huge losses if the market suddenly reverses. Wait for the price action to calm down and identify good support points before buying.
2. Don't enter into the deal all at once:
Spreading your capital over several payments reduces your risk and allows you to improve your average purchase price. If you enter the entire trade at once, you may experience sudden fluctuations that cause significant losses without having the opportunity to rebalance.
3. Never forget to place a stop loss:
Stop loss is a safety valve to protect you from huge losses. Setting an exit point in advance protects you from continuing a losing trade out of hope or hesitation, and ensures that you preserve your capital to take advantage of other opportunities.
4. Do not run after fake news and rumors.
Unreliable news can be a way to mislead traders and push them to make wrong decisions. Beware of traders who promote specific currencies for personal gain, especially through social media, and the platform as well. Entering new currencies may carry high risks due to the lack of sufficient data and analysis about them. Always rely on reliable sources and analyze the market yourself, and do not make your decisions based on rumors or random movements.
Additional tips:
Manage your capital wisely: Don’t invest more than you can afford to lose. Always spread your capital across several currencies or assets to reduce your risk.
Avoid emotional trading: Emotional decisions lead to fatal mistakes. Stick to a clear trading plan based on logical analysis.
Follow news and updates: The market is very sensitive to news, whether it is related to regulatory policies, new partnerships, or technological breakthroughs. Always have reliable sources to follow the news.
Learn from your mistakes: Record every trade, whether successful or unsuccessful, to learn from your experience and improve your trading style.
Trading is a long journey that requires patience and wisdom, not a race to make quick profits.