Any one who has traded bitcoin futures on bitmex knows all to well how extremely difficult it is and I am going to discuss the root cause and explain my experience and what I have learned to help people who have been and still are stuck in a vicious cycle of extreme wins followed by even more extreme losses. The market will literally make you do the worst possible thing at the worst possible time which negatively affects your account and more importantly your state of mind. . . . Why does this happen?
Lets dig into some of the root problems.
Bitcoin leverage trading platforms are set up in a way to incentivize as much trading as possible. High leverage, big flashing screens causing the feeling that you are missing out on the action happening, the ease of entering and exiting positions all help to reinforce more trading whether it be for your best or not. Subconsciously there are a-lot of factors effecting your emotional state and making it extremely difficult to stay disciplined and focused. Emotion is the killer of a profitable trader. It is important to eliminate emotion from our trading because it is the single biggest killer of a successful trader. Here are some ways to help solve these problems.
First you need to realize that our brain is wired in a way to protect us from feeling pain emotional and physically but we will be focusing on mental aspects.
Trading is a paradox. What ever the market makes you feel is the right move to protect yourself will most likely be the total opposite to you executing a successful trade and this is amplified by the design of these high leverage 100x BTC exchanges.