When trading crypto currencies 45% make money today only to lose it tomorrow and the other 45% will start by getting into loss. Only the 10% will make it to the end, they are the survivors. You might wonder how they make it while you are nursing wounds from trading losses.
Always remember that your mistakes don't define where you are heading, but if you are too defiant to realize your mistakes then you are doomed to fail and there is no place for you in the Cryptoverse. A lot of new traders make a mistake of jumping into signal groups because they are just looking for a holy grail.
The first thing is to get the basic concepts, study some stuff about the crypto verse and candlesticks patterns so that you will be able to decode the price action. Do not just blindly follow trading gurus, first discover yourself before getting involved in serious stuff. Know the type of markets that can be traded and know all the pros and cons.
Kill your Heart and Bury your Emotions
When it comes to trading crypto, the trading institutions and market makers toy with your emotions to the fullest. They know that when you are too emotional you will make irrational decisions and mostly you will make foolish decisions in a rush. Imagine when you buy a certain crypto and all of a sudden it spikes down, its obvious you will panic and end up thinking you made an error and you end up exiting your trade.That is how traders lose their hard earned money. Before buying make sure you do proper analysis and research so that when you get it you just let it run and let the market do the rest while you relax. Don't keep on checking the screen every second because once you do you will get emotional.
Trailing Stops and Stop-loss
On this as a trader i think you will have to decide whats best for you but at times you should think outside the box. Lets say we are to fight with weapons and you are given the opportunity to select you weapon and then give your opponent his, do you think you will give him a better weapon than yours? Definitely not, it obvious you will take the best weapon so that you will have an advantage and win.
Remember brokers make money through spreads, rollover costs and from "the losses you make" that is why they try by all means to manipulate the markets and extend spikes. They give you stop losses so that you minimize your loss, but let me give you a short example. Lets say a broker has 100 000 client traders and each put a stop loss of of $5, if those stop losses are hit the broker will make $500 000.
They will do a lot of whiplashes before the trade took it true direction and when they do those whiplash they make millions. So i think its much wiser to close your trade manually when you feel you are wrong than to be whip lashed. The markets will feed on you if you are not careful enough, so always make sure the odds are always in your favor and trust your instincts and trust the process. Do not trade with too much expectations because you will end up risking what you can not afford to lose and lastly be amongst the 10% traders not on the losing 90% side.
