Here are two more common trading mistakes that are easy to commit unknowingly.

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Over-Analyzing Charts
May people study things like the RSI which I like a lot. -The relative strength index and MA which is moving averages. You can see fancy lines all over the charts to see if things are overbought or oversold. There are all kinds of different things that you can look at: trends and you know that there are many great indicators that I use. I also look at patterns though I'm no expert. This isn't my expertise and there are other Steemians that do a better job of analyzing charts. I'll be honest. I do look at the patterns, the highest lows, the decreasing highs, the 7-day averages, the 25-day moving averages, the 100-day. I kind of factor those in with my own trading intuition. If I have a good feeling about it, I will look at the chart and if things really look right, then I become even more confident about my position.

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Many people make the mistake of over-analyzing charts. They have too many lines and numbers all over the place. They overcomplicate things but don't pull the trigger when they feel like they need to. -I have done that before. I'm not saying it’s a bad thing and I’m not downing anybody who over-analyze. If that's your thing and it works for you, keep doing it, brother or sister. Keep doing it but what I find is a lot of people look at something and something just doesn't look right but they don't pull the trigger and then it just goes up or tanks significantly before they can do anything. When I miss a position and go: Aah! You know I should have done it!

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The reality is this space is so unpredictable and there is so much money coming in and coming out. This is not like a traditional stock market. A lot of the things that you use in the stock market don't really apply in crypto right now. Down the road, when things are less volatile, we will absolutely start to see more consistent patterns more often. You still definitely see patterns in crypto but for me, I don't just live and die by analytical decisions. There are many things that I look at that help me pick a time to buy or to sell a position. Over analyzing and being afraid to pull the trigger when you thought that you needed to whether it is buying or selling can hurt you.

Not following your investments on social media
This is very much related to over-analyzing charts since your analysis should also cover what’s happening on social media. This is something anybody I think should do if buying into an investment. In this case in cryptocurrency, you’ve got to look for announcements and real events shown on Facebook or Twitter. If you don’t have any social media life, make dummy accounts. Don't put a profile picture. Just follow your investments, associated companies, projects and influential people. I can't even say how important it is to follow your investments on social media. I probably made about 30% of my entire portfolio in profits from watching social media. That means following them for example, I am following influential people on Twitter and of course, Steemit. If they make an analysis or announcement, I'll see it right away and ideally make a move just in time. If there’s some sort of good news, the price of a coin is going to go up and people are going to get excited. -That’s an opportunity for me to get some profit. Also, for the negatives, maybe there's a really bad news in the market and maybe there is some FUD like when TenX lost their partnership with Visa, I found out that day and I sold my entire position. I then managed to save 25% of losses. Before people start to freak out in thinking something is going to crash, I sold it and saved me a lot of money. So you should follow your investments on social media. I cannot stress that enough. Also, follow influential people whose words do affect the market. They can possibly keep you informed or tip you off on something big that’s about to happen. You can then factor that into your decisions. Also, you should not just listen to one person but gather some information. Information is the key to success in any type of investments but especially in crypto because it is a speculative environment where all is done in speculation and if you become very good at speculating the future by news and rumors, you can make a ton of money.

In my next blog, we will discuss two more common mistakes that people do in trading Cryptocurrencies. If you missed the first parts of this series, please click on the following links.

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