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What are the common mistakes to avoid when it comes to position sizing in cryptocurrency trading?

avatarInstruistoDec 26, 2021 · 3 years ago1 answers

What are some common mistakes that traders should avoid when it comes to determining the appropriate position size in cryptocurrency trading?

What are the common mistakes to avoid when it comes to position sizing in cryptocurrency trading?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    When it comes to position sizing in cryptocurrency trading, it's crucial to avoid the mistake of not setting realistic profit targets. Setting unrealistic profit targets can lead to greed and potentially result in missed opportunities or significant losses. It's important to set achievable profit targets based on market conditions and the risk-reward ratio. Another mistake to avoid is not regularly reviewing and adjusting your position sizing strategy. Market conditions and your risk tolerance may change over time, and it's important to adapt your position sizing strategy accordingly. Lastly, traders should avoid blindly following others' recommendations or signals without conducting their own analysis. It's important to do your own research and make informed decisions based on your own analysis and trading plan.