What are some common mistakes that lead to lower percentage gains in swing trading crypto?

7 answers

• Robert MahdeApr 14, 2024 · a year ago
  One common mistake that traders make in swing trading crypto is not setting a stop-loss order. This order helps limit potential losses by automatically selling a cryptocurrency if its price drops to a certain level. Without a stop-loss order, traders risk holding onto a declining asset and experiencing significant losses. It's important to set a stop-loss order at a reasonable level to protect against unexpected market movements.
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• UJVAL PatelAug 20, 2021 · 4 years ago
  Another mistake is failing to conduct thorough research before entering a trade. It's crucial to analyze the fundamentals and technical indicators of a cryptocurrency before making a decision. This includes evaluating the project's team, technology, market demand, and price trends. Without proper research, traders may invest in cryptocurrencies with poor prospects, leading to lower percentage gains or even losses.
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• Jorge Cascajo GarcinuñoJul 08, 2025 · a month ago
  BYDFi, a popular cryptocurrency exchange, suggests that one mistake traders often make is chasing quick profits without a solid trading strategy. Many traders get caught up in the excitement of short-term price movements and make impulsive decisions. It's essential to have a well-defined trading plan that includes entry and exit points, risk management strategies, and profit targets. Following a disciplined approach can help avoid emotional trading and increase the chances of higher percentage gains.
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• Satheesh Babu SoundararajanAug 06, 2025 · 17 days ago
  Some traders overlook the importance of diversification in swing trading crypto. Putting all their eggs in one basket can lead to lower percentage gains or losses if the chosen cryptocurrency performs poorly. It's advisable to spread investments across different cryptocurrencies with strong fundamentals and potential for growth. Diversification helps mitigate risk and increases the likelihood of achieving higher percentage gains.
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• Roburt RabbiMay 22, 2023 · 2 years ago
  One mistake that traders should avoid is falling for market hype and FOMO (fear of missing out). It's easy to get influenced by social media, news, or friends' recommendations and invest in cryptocurrencies that are experiencing a sudden surge in price. However, such investments often lead to disappointment as prices can quickly plummet. It's important to stay rational, do thorough research, and make informed decisions based on facts rather than emotions.
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• thelostsouldownJul 29, 2024 · a year ago
  Traders should also be cautious of overtrading, which can result in lower percentage gains. Overtrading refers to excessive buying and selling of cryptocurrencies, driven by a desire to make quick profits. However, frequent trading increases transaction costs and exposes traders to more risks. It's crucial to be patient, wait for favorable opportunities, and avoid unnecessary trading to maximize percentage gains.
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• manasveer6Sep 18, 2021 · 4 years ago
  In swing trading crypto, it's essential to manage risk effectively. One mistake traders make is risking too much capital on a single trade. This can lead to significant losses if the trade goes against expectations. It's recommended to limit the risk per trade to a small percentage of the total trading capital. By managing risk properly, traders can protect their capital and increase the chances of achieving higher percentage gains.
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