Leverage Trading has become the allure to most people trading in the cryptocurrency for a number of factors. In 2017 bubble most people were trading spot alt-coins because effectively trading more as a stock market environment. Looking value areas to buy and go long. You owned what you bought and there was no sort of liquidation threat. The market was able to sustain the amount of gains necessary to keep people from leverage trading bitcoin on bitmex. I very rarely ever used bitmex because of the high level of discipline and skills you need to be profitable. Bitmex is a platform that should not be used by anyone who is not a fully experienced trader. This started moving away from the stock market style and moving to a leveraged futures markets like the CME in Chicago, probably the most well known futures exchange in the world. Having traded in both futures and stock market I can tell you it requires a much higher skill level to intraday leveraged futures. Leverage simply amplifies what you are doing so if you are not profitable you are simply amplifying the amount of losses you occur. this exact same reason we are drawn to it because the possibility to make massive gains. Most likely you even have experienced massive gains which makes it even more difficult to see the problems and vicious cycle of losses, revenge trading, and simple lack of discipline and patience.
Second major problem is the way the platforms are designed. Without proper education and training the platforms operate the same way casinos due. They incentivize more trading rather than smart trading with the ease of access to trading, position and leverage, the large buy and sell, the flashes of orders printing and order-book movement speed, The flashing lights all feed into FOMO as if things are moving so fast with out you. It brings on anxiety and takes away logical frame of mind and feeds into emotional frame of mind that is the absolute killer to profitable trading. Without the proper training from an experienced trader is practically impossible to figure out how to control these emotions on your own let alone even be aware that they are happening to you. So what can you do to help you overcome these problems as someone who wants to be serious and trade in a professional matter. This has to be treated like a business and an outline has to be made so the business is productive. Imagine a factory where people didn't have a set routine and every and just came in trying whatever they felt might work in order to be consistent and productive. You can begin to understand how this company relates to your mind and the approach you take on trading.
Most people will say go buy the book trading in the zone by Mark Douglas, which is a great book but sometimes most people are trying to find some useful practical ways to change your trading.
The first and most important thing to do in order to avoid having a bad trade is to simply turn off the chart and occupy yourself with something else in the meantime. Log out and do not watch the chart. I have found that this will automatically increase the odds of a successful trade because the more you watch the chart the more of a chance to change your mind from your initial thesis and this will chop up your account till its gone, Death by a 1000 cuts taking minimal losses entering and exiting before the break out even happens. I am sure many can relate to having similar thought patterns while having on a position. The longer the market pushes sideways the more people will double guess themselves and relinquish small losses entering and exiting thinking you know what goin to happen and in reality no levels were actually broken. Turn off the screen and let your system work so you do not ever exit a trade only to watch it take off with out you ever again.
The second and this comes next because it takes longer to develop the necessary discipline and patience to implement these ideas. You need to have a system, a clear set of variables that you check off before entering a trade. This allows you to have a routine allowing much more attention to different markets and/or opportunities. Once you have a system your trading will run subconsciously allowing you to trust your system leading to much more consistency. This will only come after you realize there is no quick way to do this no matter how quick you have made thousands in the past. It is very difficult to make those amazing trades and no how to stop trading after that and keep the profit. More often than not your euphoric feeling will make you more optimistic and more likely to take more risk when in reality thats the exact opposite of what you should do. After taking a big win that is time to fall back and re-asses. You just had a win and you must understand you must be patient for the next. the market is designed to lure people in by giving them a big win only to claw it all back plus some over the next 50 losses because the volatility is now played out and you must allow for everything to reset itself and take its time to build momentum slowly for the next move. Patience and Discipline is the key to trading and controlling the euphoric emotion to prevent you from jumping into another trade while in that state of mind. The exchanges prey on all these psychological and subconscious emotions on the human mind. It is not natural to do the opposite so it takes time and practice to be able realize it and be able to understand how to stop it before it causes us to make a mistake.
As hard as it is only practice and repetition is going to bring success. If you really enjoy trading as much as I do then you have no choice but to learn about the psychology of trading and how to think like a professional trader if thats what you want to be. Place your trade, Place your stop and turn off the chart. I guarantee if you do this your trading will become so much more consistent and steady than crazy ups and downs eventually ending in 0 equity.
The second part of this article
