What are the common mistakes to avoid when engaging in daily swing trading in the cryptocurrency space?

3 answers

• Dec 15, 2021 · 3 years ago
  One common mistake to avoid when engaging in daily swing trading in the cryptocurrency space is not setting a stop-loss order. It is crucial to have a predetermined exit strategy to limit potential losses and protect your capital. Without a stop-loss order, you may end up holding onto losing positions for too long, which can result in significant losses. Make sure to set a stop-loss order at a reasonable level based on your risk tolerance and trading plan.
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• Dec 15, 2021 · 3 years ago
  Another mistake to avoid is overtrading. Daily swing trading can be exciting, but it's important to avoid the temptation of constantly entering and exiting trades. Overtrading can lead to increased transaction costs and emotional exhaustion. Instead, focus on high-quality setups and be patient in waiting for the right opportunities to trade. Remember, quality over quantity.
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• Dec 15, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, suggests that traders should avoid relying solely on technical analysis when engaging in daily swing trading. While technical analysis is a valuable tool, it's essential to consider fundamental factors as well. Stay updated with news and developments in the cryptocurrency market to make informed trading decisions. Combining technical and fundamental analysis can provide a more comprehensive perspective and increase your chances of success.
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