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Common Mistakes
🕑 Added 2021-09-08 11:03:19 +0000 UTCRisk/Reward
Not knowing the risk/reward ratio is a common mistake for traders and casuals, but a very easily avoidable one.
I usually see people doing something like “all in”, “go big or go home” or “big balls club” stuff when it’s not smart or not worth the risk to reward ratio. You will see me referring to the risk/reward ratio almost every day and on almost every post. It's one of my key concepts to give you the best advice.
To give an example, if you can make 50k but you can lose 100k, it's not a smart move and not worth the risk. But if you can make 10k but only lose 1k, it’s a smart move. Nobody can 100% predict the right prices but we can get close to it! I will help you with this one a lot!
The most common risk/reward comparison is Discard Gold Rare investments. These usually provide a very low risk with a decent reward. With a bit of experience, you can apply this idea to all trades and understand when to make take a risk and when to avoid this risk.
Hype
Joining a trading hype is like the first mistake casuals usually do. A simple Tweet or Instagram post can lead to a hype investment.
Avoiding this is tougher than most think, but if you see a post on any bigger social media account, it's probably already too late. Other indicators are high prices, flaws in the logic behind the buy, unrealistic buy prices or buy prices that were a lot cheaper a few hours ago. This is also very common with public leaks.
We always aim to get you ahead of the hype and then sell during the hype.
FOMO (Fear of missing out)
FOMO is almost the same but it’s a bit different and important to explain, most traders don’t even know the real difference.
FOMO is more like that you saw something happen and which results in profit and then forcing yourself to do the same again on the next possible opportunity. That’s the real FOMO in FUT, missing out on profit another time again.
Avoiding this is a bit tougher, it can be very tempting and can be frustrating after seeing people doing it successfully and then seeing yourself fail on it. The best tip is to decide each trade on its own, looking for the risk/reward without thinking of the previous result too much.
This goes even further, there are FOMO patterns across multiple FUT years which lead to many people doing the same thing over and over again. The most common one is Gold Discard Investments for TOTS.
Old data/wrong data
Old data or wrong data are still very common and probably the toughest mistake to spot.
The most common way is traders trusting market graphs from last year. At the beginning of a new FUT year, it's unavoidable as this is the only data we have but it's important to know that every year and every market moves differently and we see different results.
That’s also how you can avoid it! As the year continues, you will slowly get what I mean, it’s important to realize that this is a new year. You can’t just copy stuff from last year and hope to make the same profits.
Holding cards too long
Something most traders don’t teach you or don’t even know themselves, it's important to know when to just sell a card and move on. Even taking a loss is not a big deal as long as you make more wins.
This is something that you have to learn once and keep sticking to throughout the year. There’s no magic spell to make a bad trade turn into a good trade.
There are two steps to understand when to sell a losing card. First, if a card is likely going to continue the downtrend, then it’s smart to just sell and get out. Secondly, if you have a better investment lined up then it's also the best idea to just sell and move on with the new investment.
Unrealistic Goals
Your goals should be clear and realistic. A realistic goal would be improving each month's profits or improving your trading skills each month.
It's not possible to turn 10k into 10m in 2 weeks, however, it's possible to improve your trading skills to reach 50m by the end of the FUT year.
Don’t ever feel forced to reach these goals, they are your motivation to keep going but not something you have to reach to be successful. Having fun and enjoying FUT is probably the best goal.
