Essentials for Traders

[Nifflerco]

In most cases markets start pumping after people lose hope and sell. It's just a never ending cycle.

That's the trend that only few have noticed.
Experts said that we should not panic when the price dump, they said we should buy the dip and sell the bottom, and be greedy when people panic.

The reality of the situation is that even though many ppl realise this is how they should do it, FUD consumes them and they end up not buying the dip, and when market start pumping again, they realise their mistake and jump back in out of FOMO.

The best strategy to fight the FUD is to have some other reason to believe in the asset that you are trading, this is something that will motivate you to buy it during the dip. If you do not have  fundamental confidence in the asset that you are investing you are likely to hit the FUD or FOMO trail.

[whirlcoin]

Trading is risky in every market and if you are not well prepared you might ended up losing money.
Here's some example of the skills and things that you must have before you start trading:

1. Capital - Amount that you are willing to lose and you might don't need in the next 6mos. If you want good amount of profit, you can start with a higher capital but since you are just newbie start with small and invest big later on.

2. Knowledge - You must equip yourself with this thing and keep on learning because in trading you can learn even you lose money. You must know how to execute the basic, buy and sell and study more about the charts, don't depend to anyone.

3. Patience - You must be more patient in this kind of market, there's no room for your emotion here and your trading decision must really based on your study and not on any FUD news.


This 3 things can help you a lot on your journey, don't just focus on money make time for you to learn more and profit will come later.

yes I agree without the three important things you cannot be a complete trader in your life so you need to follow it and everything most probably especially the patience are the most important for everything without this quality you will not been successful.

[omonuyak]

Op I am with you on those three points!  To succeed in trading you most be patience and investing with good knowledge.  Many traders jump into the market without adequate knowledge on how the market work and at the end lose money.

[Sanitough]

Op I am with you on those three points!  To succeed in trading you most be patience and investing with good knowledge.  Many traders jump into the market without adequate knowledge on how the market work and at the end lose money.

They do and they normally loss money.
However, this is healthy for the market I guess because when some are losing money, it will also help the smart one to profit.

[LogitechMouse]

1. Capital - Amount that you are willing to lose and you might don't need in the next 6mos. If you want good amount of profit, you can start with a higher capital but since you are just newbie start with small and invest big later on.

This is one of the most important need of a trader. Without capital, we can't trade . I think lets just minimize our capital if we are still newbies in gambling to prevent losing a huge amount of money.

2. Knowledge - You must equip yourself with this thing and keep on learning because in trading you can learn even you lose money. You must know how to execute the basic, buy and sell and study more about the charts, don't depend to anyone.

Read books, learn from mentors, find a mentor that will help you, watch youtube videos. These are the things you must do if you want to become a successful trader. Without doing this, you are just throwing your money away.

3. Patience - You must be more patient in this kind of market, there's no room for your emotion here and your trading decision must really based on your study and not on any FUD news.

Well, without patience you will lose. You will let your emotions trade and not yourself. Trading with emotions will result in a possible loss so just be patient if you are trading. If your coin goes down, hold it unless you know how to use stop loss.

[Ucy]

Newbie don't necessarily have to use real money to learn trading on exchanges. They could use demo account to learn. There are some exchanges that offer the demo trading feature.
The best advice for newbies remains "trade with what you can afford to lose'

[Lee_Mire]

Investing beats trading.

[bitgolden]

In most cases markets start pumping after people lose hope and sell. It's just a never ending cycle.

That's the trend that only few have noticed.
Experts said that we should not panic when the price dump, they said we should buy the dip and sell the bottom, and be greedy when people panic.

You are both, because that is the major tool and strategy the whales use in accumulating coins and they will always do anything possible to come up with any idea that will make a seller panic sell for them to be able to buy at cheaper price, that is why they are still the ones behind most of these negative news we see about bitcoin so it can cause FUD for investors who are not strong to sell low.

While they pump the coin when it has gone to deep and they must have accumulated whatever is enough for them.   We just have to try not to give in to their strategies again and show them we are stronger than them, just that doing so, we might experience a stagnant price for a while.

[Vispilio]

It takes a very specific psychology and set of character traits to enjoy day trading or high frequency trading.

Only people who genuinely get a high on chaos, adrenaline, risk taking and lots of action without getting psychologically damaged by momentary / short term financial losses can consistently engage in intensive versions of trading.

If this doesn't sound like you, investments with medium to long term profiles would be the reasonable option for you.

[Malsetid]

It takes a very specific psychology and set of character traits to enjoy day trading or high frequency trading.

Only people who genuinely get a high on chaos, adrenaline, risk taking and lots of action without getting psychologically damaged by momentary / short term financial losses can consistently engage in intensive versions of trading.

If this doesn't sound like you, investments with medium to long term profiles would be the reasonable option for you.

I think people can eventually adapt to that in time if they really want to. Many good day traders probably started as jittery ones but were determined to learn. Taking in a lessons and techniques from losses as much as from gains. Of course this doesn't apply to all but if you really want to be a good day trader, the character traits you mentioned can be picked up.

[incomefromcoins]

we need to have patience and strategy for trading and capital for investment and most importantly money management

[deisik]

It takes a very specific psychology and set of character traits to enjoy day trading or high frequency trading.

Only people who genuinely get a high on chaos, adrenaline, risk taking and lots of action without getting psychologically damaged by momentary / short term financial losses can consistently engage in intensive versions of trading

Ultimately, it all comes down to your net financial result

From my perspective, any normal person can cope with anything you described (high on chaos, adrenaline, risk taking and lots of action) as long as they are able to earn profits enough to make sense of this psychological tension and interested in that. So, in the end, it is not so much about a specific set of personality traits as their balance in respect to profit expectations, i.e. how much profit is needed to justify the mental effort required to obtain it (read, everyone can do that). Further, no one can actually stand serious losses as long as they are serious to the person experiencing them (this is like a reverse tautology)

[jhonjhon]

It takes a very specific psychology and set of character traits to enjoy day trading or high frequency trading.

Only people who genuinely get a high on chaos, adrenaline, risk taking and lots of action without getting psychologically damaged by momentary / short term financial losses can consistently engage in intensive versions of trading.

If this doesn't sound like you, investments with medium to long term profiles would be the reasonable option for you.

I think people can eventually adapt to that in time if they really want to. Many good day traders probably started as jittery ones but were determined to learn. Taking in a lessons and techniques from losses as much as from gains. Of course this doesn't apply to all but if you really want to be a good day trader, the character traits you mentioned can be picked up.

All are actually welcome into trading but only few were tried and survive. We could say, for 100 traders mostly probably 50% of them will continue and being in the right and the rest will bankrupt and leave crypto with full of regrets. This is how being a traders, if we have that strong determination and willingness to take the risk, will surely have a fruitful results.

[GregH37]

I think people can eventually adapt to that in time if they really want to. Many good day traders probably started as jittery ones but were determined to learn. Taking in a lessons and techniques from losses as much as from gains. Of course this doesn't apply to all but if you really want to be a good day trader, the character traits you mentioned can be picked up.

Virtually every traders started jittery at their initial stage but what amuses me is the fact that we still have lots of people that still get jittery despite their number of years in the trade, sometime I find it quite unbelievable that he has spend good 4 years trading and still panic sell too or still trade with emotion.

I don’t think this trading thing has to do with how professional one is, I have seen a professional go bankrupt after collecting money from quite a number of investors to help them trade on their behalf and lost half of the money to panic sell, I also think sometime, it is the over confidence of professional  trader thinking they cannot fail that affects them, some don’t even use risk management tools like stop loss and others.

[deisik]

I think people can eventually adapt to that in time if they really want to. Many good day traders probably started as jittery ones but were determined to learn. Taking in a lessons and techniques from losses as much as from gains. Of course this doesn't apply to all but if you really want to be a good day trader, the character traits you mentioned can be picked up.

Virtually every traders started jittery at their initial stage but what amuses me is the fact that we still have lots of people that still get jittery despite their number of years in the trade, sometime I find it quite unbelievable that he has spend good 4 years trading and still panic sell too or still trade with emotion

I don't think we can entirely get rid of the "jitters"

Though it doesn't necessarily have anything to do with panic sells (or panic buys, for the record). Even if the price moves in your favor and your profits are rising, you will still feel excited as adrenaline rushes through your veins. That has more to do with your character traits as such, i.e. whether you are emotional or not very much overall (note that it doesn't mean that your trades are emotion-based). It is like fear. Everyone feels it, while the real difference between a novice trader and an experienced one lies in how they deal with it

[justspare]

we need to have patience and strategy for trading and capital for investment and most importantly money management

Anyone that doesn’t have knowledge and strategy to trade, it’s better for them to stay away from it. Trading is not meant for everyone , if you can’t trade , there are lots of other things that you can also do to make money through cryptocurrency. But, if you insist that trading is what you have to do, then you should take every time in studying it and also learning about crypto itself to be sure of how everything works.

I believe that capital is very important and that reminds that there are people who don’t have money, but because they think that they can go all in with the little money they have and withdraw big money within a short while, they decide to risk everything and at the end they will end up losing every money they have. It just doesn’t work like that.

Anyone that wants to be an investor/trader must first make money from a regular non-risky business and after they have made enough money, they can take a little percentage and trade with it.

[deisik]

Anyone that wants to be an investor/trader must first make money from a regular non-risky business and after they have made enough money, they can take a little percentage and trade with it

Well, there is another point of view

It is common knowledge that most wannabe traders will lose in the beginning, and that is normal (what's not normal is if you are unable to change your approaches but I digress). Then, if you don't have capital, you can't lose much, right? So starting early with small money can actually prove quite beneficial in the end since when you inevitably lose your balance at first, it won't take much time and effort to make up for your loss via "a regular non-risky business"

Conversely, if you first spend years making enough dough in anything other than trading and they lose it all (as it is never the case with novice traders to cut their losses short), you may have a hard time to gather yourself up and spend a few more years to get back what you so carelessly lost. And I'm not even speaking that your whole attitude toward trading may turn completely negative

[Wexnident]

Newbie don't necessarily have to use real money to learn trading on exchanges. They could use demo account to learn. There are some exchanges that offer the demo trading feature.
The best advice for newbies remains "trade with what you can afford to lose'

But for "some" newbies they are taking demo account not that serious because they have this thinking that isn't real at all. I know there are several exchanges like bitMex where you can trade without money involve as if you are really on a practice trade and familiarizing the market.

[michellee]

Newbie don't necessarily have to use real money to learn trading on exchanges. They could use demo account to learn. There are some exchanges that offer the demo trading feature.
The best advice for newbies remains "trade with what you can afford to lose'

But for "some" newbies they are taking demo account not that serious because they have this thinking that isn't real at all. I know there are several exchanges like bitMex where you can trade without money involve as if you are really on a practice trade and familiarizing the market.

Some newbie doesn't want to practice with the demo account because they cannot see the real profit if they got profit. They want to get a real profit, and that is why many newbie traders come to the exchanges, but after they register, they don't know how to trade with the right. But some other newbies can learn more than the others and so they can be able to make their real profit in the exchanges.

[GreatArkansas]

Newbie don't necessarily have to use real money to learn trading on exchanges. They could use demo account to learn. There are some exchanges that offer the demo trading feature.
The best advice for newbies remains "trade with what you can afford to lose'

But for "some" newbies they are taking demo account not that serious because they have this thinking that isn't real at all. I know there are several exchanges like bitMex where you can trade without money involve as if you are really on a practice trade and familiarizing the market.

Yes, that is the most problem of newbies who are taking some free demo. They don't take it seriously, but for me, to become a successful trader, you need to start from the bottom, as OP said, you need patience. But I know some people who started in some demo account who become successful, but some also said that when they used the demo, they are good and most of the trades are success but when it comes to the real trading account, they lost