There is no particular degree that makes us successful cryptocurrency traders, in schools and courses we learn specific skills, which although they are the basis for our performance, do not ensure absolute success. Based on everything that has been learned so far, I present some ideas that you might find useful.
In the first place, I believe that a trader (in any of its categories) should always have a plan for their operations, despite the belief of many detractors, trading is not a random game, facing the market is not "throwing the dice" and rely on probability. The cryptocurrency or any other asset trader has to be fully aware of how the markets work and the principles behind these trades. A successful trader must start by studying all the ins and outs of that market he intends to deal with in order to eliminate all potential emotions in buying or selling.
His risk profile should always be an extension of his thought process and be sure why he makes the decision to trade a given position. He does small trades until he has established a rhythm. If he is satisfied with the results of several recent operations, he is not in a hurry to plunge into another immediately. It is very common that even great trading GURUS can be "destroyed" by the market deceived by their enthusiasm and euphoria.
Thinking optimistically and disciplined trading a strategy would significantly improve the probability of your portfolio. Not really understanding this point is crucial because no matter how good your trading system is, without disciplined strategy you will hit the cusp of success and find a way to screw yourself up. You can spend months and months researching techniques and testing ideas, but unless you're winning the "game" of emotions, you're never going to consistently make money; that's what trading and your journey to profitability is all about, the goal is to trade by YOUR RULES and take the money the markets give you.
No matter how strongly you feel about a given position, you must obey the principles of trading discipline. Don't let your business decisions and results reflect who you are as a person or how you relate to others. It is not essential that you trade daily; it is simply essential that you maintain a high win rate on the trades you decide to make.
By this I mean that we do not tend to place trades with a negative Theta, as they generally have a low chance of success. It is common to see how many traders tend to let undefined risk losing trades run to stretch their duration, when the correct thing to do would be to have defined risk trades and simply endure and absorb the losses. Since we cannot profit from our assumptions, we are trading strategically, but we need these assumptions to motivate us to push a button and take the trade.
Respecting and complying with the rules that you define for trading can help you achieve your objectives and you will avoid many mistakes made by novice (and experienced) traders. The best trading tips are not about which cryptocurrency or asset to buy or sell but rather the premise that you control your emotions. Trading cryptocurrencies or other assets can be a very profitable endeavor as long as it is executed correctly, but it can definitely prove challenging for new traders, especially those who are not prepared and do not have a well thought out strategy.
If you make a good trade and manage it well after entering it, it's a good trade, even if they eventually stop you for loss. Just because you end up losing money on a trade doesn't mean it's a bad trade, it just means it's a losing trade. A trader's brain, in reality, involves integrating proper investing and market knowledge with the proper mental abilities. By the time we go into trading, all of these influences have generally contributed to the formation of trading patterns that are generally dysfunctional or sub-optimal.
Understanding the psychology of trading is vital to face the market, especially if it is as volatile as that of cryptocurrencies, the central problem is that most people need security in all its forms, however, trading is the least important activity. safe in which one could participate. You must learn to develop good trading habits, because these do not come naturally to most people and you will be giving yourself a better chance of making a winning trade.
