The massive increase of money supply in the western economies created an unseen demand for hard assets. Bitcoin is maybe the hardest asset in the world, as its supply is strictly limited to 21 million units. That explains, in short, the Bitcoin surge that we are witnessing in the past year. Now, it is time to be very cautious as the Bitcoin bullish trend is showing signs of exhaustion. The macro-environment is still bullish for digital currencies, but in the short term, we may witness a serious correction, especially as concerns altcoins.

Bitcoin Bullish Trend Showing Signs of Exhaustion

After an exceptional year that brought Bitcoin from $7,000 in April 2020 to $66.000 in April 2021, BTC shows some serious signs of trend exhaustion. Meanwhile, BTC adoption and network security are at an all-time high. So, what is changed? Here are some reasons explaining BTC trend exhaustion:

Read more: Bitcoin Trading Signal April 2021

7 Terrible Trading Mistakes That Rookie Investors Keep Making

Seven terrible trading mistakes that rookie investors keep making include the absence of stop-loss orders, investing in one or two trades, and buying low all the time. Others are hubris, being too excited, and following the crowd in addition to dumping shares quickly. These mistakes cost these novice traders significantly.

Knowing them might help you avoid them. Here is a comprehensive overview of these mistakes.

1. The Absence of Stop-Loss Orders

Trading effectively in the markets is impossible if you do not use the tools that are available to you. These tools include stop-loss orders. They will trigger the sale of a particular currency when it reaches a specific price. The idea behind them is to limit your losses as much as possible. However, using them correctly is only possible if you use a Forex demo account. It will help you learn about when to place these orders and their suitable threshold price.

2. Investing in One or Two Trades

The Forex market is a confusing one because things change in an instant. For example, unrest in the Middle East might have an impact on the demand and supply of US dollars. Moreover, the British pound might respond adversely to stalled negotiations with the EU on Brexit. Novices understand these complex scenarios affect the Forex market. Deciphering them is difficult, so they opt for one or two trades. Unfortunately, they might lose everything if these trades go wrong.

3. Buying Low all the Time

Novices believe that lowly priced trades are an excellent choice because selling them at a higher price in the future is possible. Therefore, buying them low increases their profit margins substantially. However, they fail to realize that market fundamentals are at play. That means low positions might spiral downwards. Therefore, buying low all the time might result in losses because these trades might sink. In contrast, high ones might climb even further than they are.

Read more: 7 Terrible Trading Mistakes