BOTS Blog: The 5 most made mistakes when trading with an app
BOTS is going to turn the world of investing upside down. Algorithmic trading will become available to everyone in the world, not just the richest 3% in the world. To help you get started with the BOTS app, we've created some informative videos for you.
The BOTS app is an open platform on which expert developers offer their bots. These bots invest for you. They make their choices based on artificial intelligence, machine learning and algorithms. So bots are actually automated trading strategies.
With our app, the best trading strategies are now available to you. And not only for the richest 3% of the world. In this way, together we will turn the world of investing upside down and make it fairer and more transparent.
Trading via an app
At the moment, the bots on the BOTS app are trading mainly crypto. And that trading is very easy via your own smartphone. Where with other trading apps you have to get started yourself, the bots in the BOTS app trade for you. So you can sit back and relax.
Maybe you have another trading app besides BOTS in which you trade yourself. If so, pay close attention to what you're doing, because a mistake can be made in an instant. And of course this also applies to trading via your computer.
In this video, Simon tells you the five most common mistakes made when trading with an app and how to avoid them.
Trade via a computer or smartphone
Investing and trading is not easy. Not via a computer and not via an app either. And although the operation of all trading programs are different, they all have the same goal: getting a return on your investment.
If you trade yourself, you are of course responsible for this. To a large extent your strategy will determine your return. So how do you determine a good strategy and what are the things you really should not do.
Simon went looking and found the 5 most common mistakes.
Mistake 1: Fear of missing out (FOMO)
A well-known phenomenon when trading is FOMO, or Fear of Missing Out. This phenomenon is also known outside the world of trading. Within this context it's about the fear that you'll miss "something" in terms of movement on the stock market and that you'll consequently start buying or selling at the wrong moment.
Mistake 2: Making a decision too quickly
Suppose your neighbour tells you that he has made high returns by buying shares of a certain company. You might then be tempted to quickly buy these shares as well. But why? Because your neighbour advised you to do so?
Don't listen to anyone when it comes to the choices you make, except for professionals who act on a daily basis and have already earned their stripes.
Simon only follows recognized trading companies on LinkedIn and Twitter. He also keeps an eye on stocktwits.com.
Mistake 3: Listening to your emotions
As an extension of FOMO and making decisions too quickly, there is also the danger of listening to your emotions. You have to leave emotions out of your actions, because otherwise you will start buying or selling too quickly, too late or at the wrong moment.
Some people are so convinced of their feelings about a particular asset that they make a bold move. Whether that's a good thing or not?
Mistake 4: Not trading with the right app
At this moment there are several providers who have made an app with which you can trade. Often these differ quite a bit, especially when it comes to what you can and cannot trade in through the app. The commissions are also miles apart.
Anyway, it's a good thing to remember: There is no such thing as free trading. There are always transaction costs associated with trading and the creator of the app doesn't work for free either.
Think about what you want to do with a trading app beforehand and then find the app which can really do all this for you. Keep an eye on the costs.
Simon wants to trade crypto and possibly bonds, but doesn't really want to do any work on it himself. So he was looking for an app that makes it possible to trade automatically. That is how he found the BOTS app.
The big advantage of investing with the BOTS app is the fact that it is automated. It's easier and it takes you significantly less time. A big advantage. You can read more about it in this article.
Mistake 5: Wrong expectations
If a company reports positive annual results, this does not automatically mean that the price of that company will rise. This has everything to do with the expectations which the company has previously expressed.
Do they end up earning less than what they expected (even if it's still in the plus) then the stock may even fall.
So make sure you inform yourself well so you don't have any wrong expectations.
Trade in crypto?
Right now, the bots on the BOTS app are trading mostly crypto. And for some, that's brand new and, fair is fair, maybe exciting too.
How do you start trading crypto as a beginner? Where do you need to be? What are the basics and which apps are available?
Simon has already done some research. All the answers can be found here.
Need any help with anything?
If you still have questions about the BOTS app, do not hesitate to contact our support department.
Investing is for everyone
Everyone should be able to invest. And now they can. With BOTS. Are you interested, but your question hasn't been answered yet? Take a look at the FAQ's on our site. Or contact us, we will gladly explain it to you in person.
The BOTS app is now live
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.