The most common mistakes made when using trading apps
You might be a bit wary about investing through a trading app. After all, there are plenty of common mistakes made every day. We’re only human, after all! So how to prevent these mistakes? Simple: make sure you know which mistakes are often made to avoid them in the future!
Sit back, relax and enjoy the story!
Most common trading mistakes
Investing is difficult, mainly as apps and trading platforms all use different techniques to make trading possible. But ultimately, you’re the one in charge! And as you’re human, you’re bound to make one of these common mistakes — unless you know what to look out for!
Mistake 1: The fear of missing out
Remember your teen years? Everyone was supposed to go to that one party, but your parents didn’t allow you to go? Remember the overwhelming sense of fear that you would miss out on all the fun?
Well, that fear is still very much present in investing adults. Therefore, trading based on the fear of missing out is one of the most common mistakes made. Being afraid of missing out on the stock market and therefore buying or selling at the wrong time might make you lose everything you’ve invested. For example, you might quickly sell when you see a 5% drop, but that drop might make a quick recovery and start rising again. You wouldn’t be there to reap the benefits, though, as you already sold based on the fear of missing out!
Mistake 2: Deciding too quickly
Another common mistake is impatience or deciding too quickly. For example, when you hear your neighbour blabbing on about this stock that’s earning him so much passive income, you may find yourself motivated to invest in that company right away. MEH. Not a smart move! Instead, base your decisions on expert advice — that neighbour might just be showing off.
Mistake 3: Listening too much to your emotions
Did you ever just feel lucky? As if everything you’d do that day would be a success? Well, no matter how lucky you feel, it’s better to skip any investments you feel like doing. Listening too much to your emotions might result in selling or buying too quickly, which might just end up in losing money. So if you feel lucky, or read a success story of some investor and feel that you are good enough to do the same, just take a deep breath, count to ten and walk away.
Mistake 4: Choosing the wrong trading app
There are several trading apps, and each one of them is different. Some require extensive knowledge of trading, while others do the trading for you. So what is it you’re looking for? A hands-off type of thing, or a roll-up-your-sleeves kind of app? Also, think about which markets interest you to make sure you find the right app for your situation. Choosing the right app will make the investment journey a lot more fun!
Be aware: there is no such thing as a free trading app. Every app will at least ask you to pay the transaction fees. App-makers don’t work for free!
Mistake 5: Having wrong expectations
A positive earnings report doesn’t necessarily mean that the share price will rise. For example, if a company announces a 40% profit, it seems logical that the price will increase. However, if the company had earlier made a statement of expecting a 60% profit, there’s a chance that the share price will take a turn for the worse. So either trade by the advice of an expert (again, your neighbour is probably not an expert) or let bots do the trading for you!
Would you like to learn more about the BOTS app or get some more trading in cryptocurrency tips? Just continue reading below.
See you soon!
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.