I was walking down the street a few days ago when I saw a crowd of people trying to hold a man down and they were trying to get him into his car, I felt pity for him and I got the information that he is a crypto trader who has lost everything he owns to some risky high scale investment decision he took, the instance he got the news, he fainted and it took well-wishers to resuscitate him before calling his loved ones. For beginners like me, it was a rather scary experience to watch and I had several re-think about my trading decision at that instance.
While there is a lot of profit to be made while trading appropriately, the loss acquired on trading can affect the trader's mental health, well-being, sanity, and good health.
As much as I know, trading has a lot of ups and downs, I know that losing excessively can also be curbed/limited. How can traders limit their risk of amassing losses while trading, there are traders who have figured out a way to limit the level of losses involved while trading.
Always use stop loss strategy: Every smart trader should be familiar with the stop loss strategy and how it functions, this strategy helps traders sell when it gets to a certain price level and loss will be limited. Stop loss trailing helps to retain gains, the level of stop loss moves as equity price increases.
Identify entry and exit points: Understanding a trend is important for traders, the study will help us identify the right point of entry as well as exit. An entry point is a good spot to identify the right time to buy into the market, while an exit point is to help traders minimize loss as well as set appropriate profit-based targets.
Identify sell signals: With the right understanding of trading signals like; Moving Averages, candlestick patterns, trend lines, and Relative strength index (RSI). These signals will help you identify the right time to sell.
Some traders have a very strong bond with some projects, and even when it is obvious that the market is going down without any form of recovery, they still fail to sell their coins until they eventually have nothing else to hold on to eventually.
Trading is good, but not everyone can become a trader, if you have found yourself picking up interest in the field of trading, then make sure you devout time to appropriate study and gaining knowledge on the cryptosystem,
