Top 6 Biggest Mistakes To Avoid When Trading Crypto, According to Lark Davis
Everybody makes mistakes, especially those are new to the crypto space. They may need an expert in cryptocurrency, show them these mistakes and learn from that.
Lark Davis understands that. Therefore, in the latest video, he has shared the top 6 biggest mistakes that he made when investing in crypto. Hopefully, those will provide some lessons for his audience and avoid these things.
The first big mistake mentioned on the list is doubling down on losers and not doubling down on winners. Some cases, Lark doubling his position in some coins and then they just keep going down. It’s kind of the false mentality. They’ve come down a lot, but there’s still a huge potential.
If a coin can’t find a market fit or gain traction in six months to a year, all the people who are holding that token may lose their community because the price is going down. That’s not worked out well and people may lost plenty of money.
On the flip side, the mistake is not doubling down on the winners. Lark doubled down on some of his coins that have performed the best over time. That’s also a big mistake to avoid. He should have doubled down on that winner and added substantially more to it because the fundamental value of these tokens.
There’s still opportunities in this market every single day to be making gains, but the markets switched from easy mode to hard mode. And Lark didn’t quick enough to change his bias.
He did not change his bias quickly enough to adapt to that situation. He wasn’t adapting too quickly enough in this market and this market does move super fast. You do need to be ready to adapt sometimes very quickly.
Not Trusting My Gut
He saw a juicy entry, but he put that in the back burner for a few days, investigated it a little bit more and prioritized some time later in the week to take a look at that position. By that tiem, it’s up three or four hundred percent. It’s pumped so much and then it pumps another three or four hundred percent, he regretted of that slow action.
Sometimes you just need to trust your gut and at least put a little bit into it. You don’t need to put a huge amount in, do some research quicker with a little entry. So that you kind of satisfy that urge.
Lark also didn’t fully keep up on all his coins. For example he has missed some farming rewards. He missed out on like three or four weeks of farming rewards. He was letting his portfolio management fall to the wayside. It’s a mistake that’s cost money: not managing portfolio better.
So this is something it’s a constant task in crypto portfolio management’s. There is something that you have to do every week and try to do enough of it.
2021 was obviously the year of nfts when it really took off in a very big way. Some of those collections early on like Board Apes Yacht Club.
People are paying five or ten thousand dollars for these pictures of monkeys. And they’re worth half a million dollars a piece right now. There’s plenty of NFT opportunities that Lark have missed because it’s almost its own discipline within crypto. And you can’t be an expert on everything. There’s been some very obvious NFT opportunities which he had missed as an investor.
When taking profits, he set his sales targets too high and just reduce half this position and he can still save a moon bag for later on. Everybody makes mistakes investing, it’s not about trying to never make mistakes because it’s just going to happen. It’s about understanding that you make mistakes, trying to learn lessons from those mistakes, and avoid to make these mistakes again.