Bitcoin Forum

The grim thing to hear, I know but it's how the markets work. You cannot all win. But the ones that do, guess how? They take all the money from the people who constantly lose money within the markets.

So how do you overcome the fear of failure and go against the statistics? It's like anything when you consider success only so many people walk through it all and get to the other side and are actually considered to be a success; movie stars, sportsmen and women and so on. It is no different from trading.

A quick cheat list to help you

- Trading is EMOTION DRIVEN
- YOU must understand the importance of RISK MANAGEMENT
- YOU need to know elements of technical analysis
- YOU are also required to understand fundamental analysis
- Create a journal and record all of your trades.
- LEARN as much as you can and practice without any capital.
- Understand the concept and process of compounding and why it is so important.
- Only trade yourself and DO NOT use auto trading bots led by a company
- Use 3% of your entire balance
- Make sure you have a trading plan and follow it each time
- Look for the formula and not the feelings.
[/list]

I've helped a lot of people in the past get over the trading hurdle. The problem is, everyone wants to be as good as the rich guy. Sometimes you got to get years and years of experience under your belt to get very good and get very profitable.

Discipline to follow trading plan, avoid greedy and unpatient is others more important thing in trading. 95% trader failed because they have bad psychology in trading so we should be learn how to manage it. And for knowledge about technical analysis is only second thing in trading.

follow Smart Money ...  8)

hint: Smart Money Index and Commitment Of Trader Report

Another alternative if you want to avoid constant stress is too look for good projects and then buy some tokens/coins, wait for years or months to see the progress.

That's definitely better than looking at trading chart daily.

Btw there's a conflict of cheat list, one thing said trading is emotion driven while the other ask us to look for pattern and not the emotion. I think we should look for both.

Not everyone can benefits from a particular source of income, if you notice trading isn't working for you switch to something more appealing liking investing (buying and hodling of your cryptocurrency) the cryptocurrency market is too volatile and only the smart traders make profits irrespective of the market direction. If you aren't good at that then change to something that suits you.

This step must be applied to traders, but for now there are many traders who do not pay attention to the risks and also the amount of balance that must be used for traders. maybe your statement must be published to be useful for other traders.

If everything was so simple then that 95 % of traders were not losing money. Those advices will just help you to minimize your loses. It doesn't mean that following this tips will make you a profitable trader.
There always will be about 90% of traders that are losing money. Without them the price chart would look like a horizontal line.

I can tell why people are losing money

As I've been there, seen that with my own eyes and felt it with my own skin (in the game). In the end, it all essentially comes down to people not knowing what they are doing, while it just happens that whatever they are doing turns against them (read, they start losing money). The only correct decision in this case is to do nothing but it means staying away from trading altogether (what 90% of traders should do anyway if they don't want to be left with nothing). And no, there is no paradox here even if anyone sees one

Words are beautiful but reality needs a lot of effort and not follow the theories like what happens in chemical equations.
Let me follow some of your points:

Are you serious about this advice? You should put your feelings aside when you want to trade.
Your words are contradictory with the last point.

3% is a very simple percentage, including the rule that playing in the safe direction will not bring you many gains, you should risk but calculated risk. 30% of your surplus money is reasonable.

It is better to set clear points for buying and selling as the market is highly volatile and can happen a lot of change in a short period.

true but all your list is a bunch of "abstract" ideas! basically you are telling others to succeed if you want to succeed! and that doesn't make any sense.

besides things you are listing here are not easy and are not something you just learn by "chatting". they are learned as experience. in other words you have to actually start trading and analyze the market with a small amount to gain that experience otherwise talking about something like "risk management" and "emotions" is not going to do anybody any good.

I think for once,,, this is good advice. If only most newbies would even follow half of that list, they would not all be crying when the bears come.

In fact,,, even experienced traders keep making these same mistakes. The problem was everyone gambled in 2016 and 2017 and they got lucky. Anything almost that you bought made money, it was a matter only of x10 or x100.

Now it is the complete opposite. Whether you lost 50% or 90%.

This point is very pivotal to trade. Therefore, show me a good trader and I will tell you he/she understands money management. You don't become good with trade if you don't know how to manage your account. Thus, it necessary to place trades that won't collapse your account if it goes against you.

 "Create a journal and record all of your trades".

Will this really make too much of contribution  ??? I think it could rather be tiring because how many trades would you execute in a day, two days and a week etc. I will like to keep track or record of my withdrawals anyway.

no it is not.
just because some people who have no experience in trading turn to their emotions for solace doesn't mean trading is emotion driven! it just means those people have no idea what they are doing.

understanding the importance of something is not the same as knowing how to do it right!

these are good suggestions.

I don't know what you mean by the last part about company but I disagree with not using automation. it is not necessary and a beginner should NOT use it as his first step but using bots and generally automation is great.

I strongly disagree with this one.
you should use 100% of your balance but you should not deposit 100% of your money on exchanges in first place!
you deposit what you can afford to lose and then you work wit all of it, not deposit a lot and then work with a small portion!
additionally percentages depend on how much you have invested. for example if you are starting with 0.001BTC then 3% of it is too small to be worth anything, it may not even cover the fees.

there is no "formula" in trading!

I agree that the success of trading is based on emotion, most of the people lose in trading because act recklessly or become greedy, but some of the point is not necessary in my opinion like keeping journal about your trade, in the exchanges we can see the history, using 3% of your balance is too little, when you see the good chance you need to put more, so we need to be flexible about trading, but still need to know the limit and learn about risk management

Most of things wont really able to attain yet this do really requires experience and chatting or just simply telling other people about this thing wont really be effective at all
unless if you do tend to experience such things.We are seeing these kind of advises all over again and again but following these even the basic ones arent really that simple
specially when you are already on the actual trading situation but eventually you can learn up things and discover on your own when you are already there.

I don't believe the failure rate is that high but very few people will be able to earn a substantial amount from trading.  If you lack patience then trading is essentially just gambling at its core.  The only consistent winners are the exchanges because they always make money off fees whether in a bull or bear market.

Being flexible and know how to adjust when it's needed is a clear tools in order to succeed inside this industry, you have to be more precise and goal oriented, taking risk but with always using extra precautions, you have to adjust when its needed and you need to workout with this very quick changes,
people who can easily adopt will survive to this venue while those who can't take the pressures will lose it all.

I think almost all of the listed information is true. I mean don't get me wrong these are not new information, many people know this and STILL fail at trading most of the time. What you may consider failing at trading is sometimes not as horrible as you might think.

For example, someone who bought bitcoin at 20 thousand dollars and sold it at 3200 dollars has failed a big time in bitcoin, he really screwed up, but someone who bought at 20 thousand and sold at 19 thousand also sort of failed (now looking at the price he kinda get away at the right time but when he made the trade he considered it a bad loss).

Hence, all in all yeah, you can follow all of this and during a bull run you will make a lot of great money but during bear market it doesn't matter if you lose or not, anyone can lose during bear market and that will not mean a failure, just make sure you lose as little as possible.

OP how long have you been trading bitcoin/altcoins? Such threads are created very often and still can't understand why? What's the point? To enlighten new or current traders? OP that's basic that everyone knows. It would be better if you talk how you consider those suggestion, how you try to manage your anxiety, how you analyze charts and etc. If anyone wants to create thread about trading, do these what I said instead of saying same and same shit for years.

Agree with this point. This is what I am doing now. I become tired about day trading. This is really need too much patience and experience. Otherwise we can't day trade. I am buying coin now on dip and wait till pump. So I don't need to see chart everyday. But you have to choose good and potential coin. Otherwise you have to wait long time. But obviously if you have patience then you will gain. Panic seller can't do it. Because coin would be dump from buy rate so we need to wait till recover and till good profits.

99% of traders will fail if they feel lazy to do their own due diligence and when looking for quick profits through day-trading kind of approaches ;). No surprises on seeing this topic :P.

There are well prescribed methods and approaches are available for every markets and when traders are not ready to follow them then they might be getting ready to write their own fate by themselves. Similarly crypto market is known for easy and massive profits in long term. I am sure when traders target long term then there will be more than 95% chances and the remaining 5% is based on your selecting criteria of projects.

I think the most important thing is to monitor your emotional state. Sometimes you want to throw everything and go for some desperate action. But in most cases it does not lead to anything good. Therefore, you should always trade in a good mood. As well, recording all your transactions is also useful.

making the trading plan and establishing it in a right time will be the best point of you for everyone to get the perfect trading and the rest of other points are always being very useful for me to get clear mind about trading so thank you for your valuable points about trading.

thank you for your great points that you are mentioned above in your statement and there will be in most of the times we are doing some common mistakes if we get out from that we will be a good trader for long time so I think some of these points were very useful for everyone to be a best trader in his journey.

Everything points mentioned here in your short write-ups are all valid except one which I personally disagree with is the 7th point, but that doesn’t make it invalid though, because I believe that what worked for Jack might not work for jill. It is not completely bad to use BOT trading software from a reliable company, many trader are willing to trade, but lack the time to do so as a result of one activities or another that they are also engaged in it to make more money, and for those people, it is best they engaged the service of a BOT software to do that on their behalf while they are away.

Trading bots aren't actually all bad. If you're willing to take the time to learn about how to properly use them, how to configure the particular bot you have, and how to create a good configuration for the bot (and also maintain the bot from time to time to ensure best performance), they're actually pretty effective. The bots themselves usually are not the problem, the real problem is most people aren't willing to put much time into them and end up with an overall loss or don't know how to configure the bot they have.

Some trading bots also have official forums or Discord servers where you can learn more about the particular bot you have or are planning on buying (and some example configs, etc), and I highly suggest reading up on whatever trading bot you're getting before you buy it. Some are better than others.

Following some good points and strategies in trading is the most important and common thing for every traders because it will be the way to get success you don't have any idea about what you are doing at this moment it may give you are different mind set for taking wrong decision also.

I have learned trading, reading many books of important speculators such as Wyckoff, Livermore and other books that open the way of thinking about trade.

The important thing is to know what to do in the market, to achieve it, you must understand it, then you can rely on technical analysis and fundamental analysis, it is not very good that you only do technical analysis if there is no clarity in which direction the market can go, it is better to have good arguments to enter a position, either in high position or down, in that way, at least the losses can stop.

First of all, based on what data did you come up with the "3% of the total balance" idea? Is there are significance of trading only 3% of the total balance? Wouldn't that just make trading with small balances render useless? And learning is not possible without any capital. You will need to trade using real investments to get real experience. Trading experience with fake money vs real money is never the same.

yes you are right because of don't following some simple steps and simple strategies will made you to a huge disappointment in the end so following some good strategies will always be helpful for you to get the extra income for your work so I think this is called as smart work.

Can you show some examples of those auto trading bots led by a company?

It’s immediately a possible scam if you will deposit some kind of money to somebody elses account and expect to give the profits back to you. You should control all your accounts and make sure to have 2FA enabled. That’s one thing to consider when you are starting to trade.

I don’t completely agree with this. Maybe you are not well educated enough with the legitimate crypto trading bots that are around. Like Gunbot, you will connect to your chosen exchange via API. You won’t disclose anything towards another person, just your API key and the activation license towards it. Keep your API Secret a secret.

I think you have bad experience towards the “auto trading” part but I assure you that it’s different when you control your account and you download the software. It’s not in the cloud. Check out Gunbot (https://gunbot.ph)

Trading is driven by people's emotion but don't let your emotions to be in if you want to overcome your losses because you can make profits only when you thing against the normal people's mindset.JUst create your own strategy,I don't think is there any formula available to be successive in crypto trading.

Good strategy its not easy to control your emotion especially when you fomo to the altcoin, I only use 5% of my capital wheb doing trading then a 2 to 3% stop loss just be patient to entry because a wrong move can cause losing all your capital, just learned how to read the launguage of trading to easily win the your trade.

Thank you for sharing this tips with us and it is really very important we adopt it into our trading.  I am more impress on practising as much as you could with demo.  This is very important because it almost impossible to show profits in real account if your demo trade is full of loss.  It is an unwise decision to jump into cryptocurrencies and financial assets investments without adequate knowledge on how it works and the ways to personally analyzed the market properly.

Just a basic tips for trading. Anyway, I appreciate it.
But if you are a margin trader, using small leverage is really useful especially when you are not sure about your TA. Setting also stop loss is very significant if you are a trader. Another thing that I've noticed based on experience that using many indicators will just let you confuse and sometimes makes you feel unconfident.

I am referring to places like PowerBot that 'trade for you' to get a 1.5% ROI per day. There basically scams. Not algorithm trading bots, should of made that more clear.

I am referring to Margin trading here. If for example you have 3% risk of your account then you add a multiple on it, for example, BitMEX has 10X your technically playing with 30% of your stake anyways. 3% is mainly for new people wanting to learn. You increase the % as you go I suppose.

Trading is really a risky business. As the saying goes, Hiroshima was destroyed in a day, meaning that it is VERY easy for you to lose your money if you're trading recklessly, or without any prior experience.

Another saying goes by "Rome was not built in a day". To me, hodling is definitely the best way to keep long term wealth. There are living examples like Warren Buffett around who does this.

I occasionally trade too, but mainly with money I can afford to lose. When I first started, I would start with some guides (https://optionalpha.com/13-stock-chart-patterns-that-you-cant-afford-to-forget-10585.html). Once I learned the basic, I would then try trading on a demo account, so I can see my mistakes and learn from them, without having to lose any money. I have linked an exchange  (http://mkt.bitrus.com/signup/?utm_source=crowdcreate&utm_medium=agency&utm_campaign=btrs_ico&utm_content=kickoff)that allows you to do demo trading.

Thanks for clarifying. I think I want to create a clear difference between those. At least it's better understanding, especially that there are a lot of people who got scammed by it. Algorithm bots are legitimate, and the ones that ask people for money and tell them they are going to trade for you, immediately scam.

trading is very different from gambling, if trading if we lose then our capital money does not disappear only decreases but if we gamble if we lose then our capital money will also be lost because the winner takes it, so don't be afraid to trade because the loss of traders is always the best teacher later on we can understand trade and we can benefit.

I think that trading skills are the first thing that must be owned, because in my opinion without skills, it is useless for your patience and control. trading is not gambling, so the skills you must have first. and self-control you will automatically you have when the basics of trading already you know

You got a good point. Yes, trading skills are must to have besides patience and control. Together, with a combination of trading skills, patience, and control, you will be able to search potential coin at the market, and you can buy low and sell high because you have the things that will help you to make a profit.

With that combination, you do not worry if the market is unpredictable because you can find a way to help you make the profit. And I am sure that you can always control your emotion when the market is fallen so you can use the chance to buy the coin at a low price.

Well, I have been trading Crypto for the past 3 years and the only time I had lost was on my first year when I just learnt about crypto and I don't really know how the market works because I was trying to trade on my own, but when I paid a professional to teach me how to trade on crypto, I have never regretted doing that because I hardly make loss when ever I decide to enter the market because I always trade with caution and tactics that works all the time.

if in my own opinion trading skills are the first thing that must be owned by every trade because it will be a weapon so that we avoid failure that can cause losses

Wow thats good for you and paying up a professional is really costly yet you can able to learn on your own but well its your own money and it isnt really bad at all to seek out guidance.
For now on your 2nd and 3rd year on trading as long you are profitable then its good but we can really say that loses is inevitable things.Just learn from your past mistakes
yet this would really be the best teacher to enhance yourself.

Yes, things are not that simple at all. Trading is painful especially for those who had huge money invested and want to get out of the market now. They will have to withdraw with losses.

The bear market has really made things worst and people have lost up to 80% of the values. So these sought of advised only implies to the guys who are in the market for an ideology rather than the monetary benefits and not everyone is for the ideology. But I believe that the bull market in future will recover everything.

I was thinking about the concept of compounding. If I took daily profits of say between 1-2% (ofcourse some days there will be sharp dumps and sharp spikes but I am assuming those will cancel out themselves and I will also try to use stop loss where possible), Would this strategy be feasible long term, say 6 months to a year?

I  am looking at doing normal trading without the leveraging bit. From your experience, what do you think?

Catch 1-2% everyday maybe sometime make us stresful. Make sure first you already prepare for the pressure and then you will be ready for it. Because trading everyday sometime we cann stuck in a token for a certain time.

I agree with all youve stated most specially on the last part . People invest so that they become rich like those people who gets rich on crypto, but the problem is, they dont want to be focused and determined like those guys did. They want to get rich with small amount of time and small amount of effort thats why they failed. Learn that success comes with great hardwork.

Earning 1-2% daily consistently is next to impossible

I mean for armchair traders. And since you are asking such questions, I also think we can safely assume that. In other words, your assumption is more a figment of your imagination. But then yes, if you can earn that much for 6 months in a row, you will be a millionaire pretty soon, especially if you apply the power of compounding. The catch is that you should first start earning anything at all, for real

 Definitely because mostly have no control on their emotions and always greedy even without specific strategy how to avoid exceeding and especially just to obtain the right time to sell off. Well this problem is normal nowadays because mostly have no discipline and always jumping even lack of knowledge in such things. .

Failures in trading is high mate, majority of unprofessional traders has even lost so much to the extent of losing the will to even trade again.

One major thing that still destroys people’s trade is still the problem of greed and trading with emotion, since the inception of forex trading, it has been the problem and now, they have also carried it to crypto trading, impatient and wanting to get so much from little has been the issue, reason why someone will invest $50 and expect to make double back in a day and as a result of this expectation, it pushes them into margin trading where they mainly lose their money.

Of course, I do know there will be sharp dumps along the way. The 1-2% daily profits is more like the minimum I expect to have made in a day but if I don't make it in a day or make losses. I call it a day and then come back tomorrow with the same goal.
I just wanted to know if the whole idea is realistic.

Say if I started trading with $1000 while taking an average minimum 2% profit daily(this can be divided into 4 different 0.5% profit trades per day)
So projected profit after 6 months should be around $34,320.
I am not saying I would get the exact value but maybe something like $20K-25K due to a few losses along the way
- For now I do have a lot of free time (maybe throughout this whole year) meaning i can be on the screen most of the time

Is this realistic or it's just a big dream that can't be achieved?

I don't really agree with the above. The success of trading does not base on emotion rather, emotion is debacle to failure. Inexperienced and newbie tend to rely on emotion to succeed in his or her favour to his trading order while market keeps reacting to market pressure, demand and action until the person will be left with zero equity  :o because of the emotional expectation that market will soon go his favour... ;D



In my knowledge, being reckless and greedy won't be as a result of emotion but inexperience. If you are emotional, it makes you to trade with sympathy, you judge the market wrongly.

But the problem/question is that how can we gain a trading skills when we are still new in crypto trading ?  Isnt it better if we can practice first and do trial & error ?  Let us learn from our mistakes because thats what makes us perfect .

@op yeah almost all the trader will fail even the pro and veteran ones its because crypto trading is a verry hard job  . you cannot possibly predict on what will be the outcome of the coins that you hold no matter how experienced or skillful you are .

At this stage of our lives that we have successfully overcome peer pressure, we shouldn’t then allow common FOMO to push us into wrong investment or wrong trading decision.

One thing I have learnt in life is that whatever will be, will be, but we still have to work on having a very good strategy you pointed out before making any investment move, even the stop loss sometimes doesn’t guarantee that you will still not lose it all, imagine a trader without strategy scalping 20x a day and keeps applying 5% stop loss to every of his trade without winning, has he not almost lost all the investment ?

I understand it is exciting to calculate your paper profits using compounding

And then ask someone to check if your calculations are correct (as they may well be), but it doesn't work like that in real life, sorry. I'm more with the topic starter here, who claims (as per thread title) that 95% of couch potatoes will fail at trading (which may be the case). And this is what you should primarily be concerned with, i.e. not ending up included in these sad statistics with the implication being that for the total majority of wannabe traders what you say is more like daydreaming with a touch of wishful thinking

Many fails due to lack of Knowledge , due to greediness , entering at the high prices and market crashes due to which the holding period rises and if require money they will sell off quickly and end up losing the money . Better to start with low capital initially and see if one is good at trading .

 ;D By far the best thing you can do.

I already swallowed that truth.

It will not always be a win.
Not just emotions which needs to be overcome. It is also the sin of being a greedy bastard.
You want more and then you lose. You keep yourself safe by waiting for more (patience) and then you still lose.
So being satisfied with what you have is really the key to it.
Small profit is still profit.

95% of the users get into the cryptocurrency trading with the exception to get a big earning through the same. Few users out of luck make an investment and get good earning in short term. Following the suggestions provided in the Op will help with overcoming of fail with trading. People find it really hard to follow these.