Essentials for Traders

[Vispilio]

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.

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)

Thanks for your interesting opinions. I agree such an adaptation can be acquired, although I consider that a phenomenal achievement.

There were some studies made concerning the brain activity and hormonal responses of traders, and almost invariably it has been demonstrated that an equivalent amount of profit and loss lead to distinctly disproportionate emotional responses in humans, eg: the anguish experienced by a 10,000 USD loss is much greater than the joy / happiness that a 10k USD trading profit brings (at least in terms of observed brain activity, hormone levels & the poll opinions of the tested subjects).

Humans are naturally wired to be risk adverse and highly sensitive to pain stimuli; that's why it's really difficult to genuinely acclimatize yourself to this clearly unbalanced practice of emotional roller coasters that naturally come with HFT; part of the reason why a very few percentage of people can make profitable intraday / high frequency traders...

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[Faxmate]

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 

According to me it is not bad, infect there should be some institutes for new trader where they can use to take demo and tell them what are their weakness and what can help them overcome it, a good trader should take all the miner things so serious to make profit in trading, there are so many ways to gain knowledge about trading go for it and increase your trading knowledge.

[sana54210]

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  

Demo trading can still not be compared to real trading, that is what real trading will always use to senior demo in all areas, most people who has practice with demo end up becoming great with demo but the moment they are faced with real trading, they tend to panic a bit.

But, it is the demo training that will shorten the time they get use to real trading and stop panicking, but irrespective of the training we have gotten through demo, we still need to be extremely careful with the real one, we need to have our strategy in place and never trade without making our stop loss tool active on every trade.

[deisik]

Demo trading can still not be compared to real trading, that is what real trading will always use to senior demo in all areas, most people who has practice with demo end up becoming great with demo but the moment they are faced with real trading, they tend to panic a bit

It cuts both ways, actually

Technically, demo trading allows you to learn how to trade, i.e. how to add orders, cancel them, and do most other things you would typically do with real trading. But the catch is that you won't feel real emotions in demo mode and that can be harmful along the road when you get down to real stuff. In fact, it can't possibly teach you not to panic

Quite the contrary, when you start to panic for real, that will be a sort of scary discovery to you, an unpleasant revelation. I think that's one of the reasons why demo trading should be avoided when you can trade for real with small amounts and feel a bout of small panic now and then to change your ways accordingly

[posi]

Demo trading can still not be compared to real trading, that is what real trading will always use to senior demo in all areas, most people who has practice with demo end up becoming great with demo but the moment they are faced with real trading, they tend to panic a bit

It cuts both ways, actually

Technically, demo trading allows you to learn how to trade, i.e. how to add orders, cancel them, and do most other things you would typically do with real trading. But the catch is that you won't feel real emotions in demo mode and that can be harmful along the road when you get down to real stuff. In fact, it can't possibly teach you not to panic

Quite the contrary, when you start to panic for real, that will be a sort of scary discovery to you, an unpleasant revelation. I think that's one of the reasons why demo trading should be avoided when you can trade for real with small amounts and feel a bout of small panic now and then to change your ways accordingly

I agree with what you said about doing a real trading with small amount in other learn how continue or pause the panic act which was the most reason behind a lot of crypto trader losses but I don't think avoiding the demo practise is a good idea because ones could still learn some strategy through the demo while use the small real to balance the emotions level in other to be a better trade.

[SvonioneFromMangoCoinz]

Learning is very important. I learned how to plan for my big investments from financial books. Before that I was an amateur investor and only invested in emotion. That investment has cost me more than $ 3,000.
But now I have learned many things after failing. and knowledge is extremely important in the field of investment. Don't stop reading newspapers and books every day.

[Jhonyguy]

learning and practice is much essential , if we want to be traders we should know what market conditions we are trading in and what are sentiments and lots of analysis

[Barbut]

Every advice about trading can be good, but in the end a person needs to sit and start trading, without that all advises means jack shit. Experience comes from making mistakes, not from mistakes that other made. I tried many strategies in trading, lost a lot of money before I found what is best for me. Its what I`m telling others to do, to try things, lose or win some money, to learn while they doing that and to try to find whats best for them.

[beerlover]

learning and practice is much essential , if we want to be traders we should know what market conditions we are trading in and what are sentiments and lots of analysis

This two you mentioned are the main key to see a successful trade.  And when it comes to practice after acquiring knowledge, it is very necessary to stay in practice for a very long time till one in confident enough to face the real trading, some of the mistake newbie makes is to learn trading for making like a week or two, then use another 1 week to practice, then join direct trading, which to me, it’s quite too early to catch a glimpse of what is really happening in the trading environment, I fee before one can even jump into live trading, the market is always there and it’s not running anywhere, one must still take at least 6 months to practice in order to become perfect.

[Bagaji]

You have mentioned some of the factors that will actually helps newbies who don't know much about crypto currency trading and want to trade just because of testimonies from people who have made some good profit from their crypto currency trading.
In addition to the point you have mentioned, I will like add money management policy as a guide for newbies.

[Kiweikoo]

This three things are the main steps to become successful in trading. If i may add, less greed will also lead to more favorable result. Also, there are times that our trades are not in a good result, but if we are more patience we may also achieve our goal profits in trading.

This is an open secret that you should not be in the business just for money but for the provision of best services to your costumers. This helps you work delicately to improve your business. If you are in cryptocurrency just for money, greed will make you make bad decisions which would be unhealthy in the long run.

So, I think that you should avoid being greedy and would be able to make money in cryptocurrency in long run if you speculate in good coin.

[Freny250]

Greed is also important in trade.  Many people have lost good sum of money from trading reason because of greed. they tends to over wait for profit even after meeting their target which is not good for trade

[worle1bm]

Yes i agree with you that these three are most important elements in trading but most above all is money factor because you have to invest in any crypto of your choice but that must be potential coin.Newbies can't have any experience as it will come with time and mistakes.They need to be pateint in this highly risky market if they want gains.Greed should not be factor of trading.So always invest wisely and be happy.

[Ailmand]

I agree that these three are important. However, we also need time to make things possible. We should consider our availability to do trading. We should manage our time appropriately to set things well. A smart trader knows how to balance everything.

[mirakal]

I agree that these three are important. However, we also need time to make things possible. We should consider our availability to do trading. We should manage our time appropriately to set things well. A smart trader knows how to balance everything.

Time management is necessary, trading will definitely make you rich if you are smart and knows how to manage your time.
You have time for trading and outside trading because life is not only about trading alone, the money you earn should be spent for you to enjoy
and you need time to do it.

Plenty of things we have to learn to be a successful trader, but once we are in, the sacrifice we made to be successful, we will enjoy the results
as there is no limit of profit you can make here in crypto.

[gilangIDR]

I agree that these three are important. However, we also need time to make things possible. We should consider our availability to do trading. We should manage our time appropriately to set things well. A smart trader knows how to balance everything.

Time management is necessary, trading will definitely make you rich if you are smart and knows how to manage your time.
You have time for trading and outside trading because life is not only about trading alone, the money you earn should be spent for you to enjoy
and you need time to do it.

Plenty of things we have to learn to be a successful trader, but once we are in, the sacrifice we made to be successful, we will enjoy the results
as there is no limit of profit you can make here in crypto.

There are so many things that will determine whether we will become successful traders or not. To become a successful Trader we need a lot of things to learn, our ability to analyze, make decisions, time management in gaining momentum and how our emotional patience is in making final decisions.

[LUCKMCFLY]

I think that in addition to everything previously mentioned in OP, it is necessary to emphasize that the important thing in the trade is to understand it, to know how to read the Volume, to know and to be planning the Strong Hands, to know how to read the Order Book.

In my case I analyze the market based on Wyckoff's philosophy, and I also use some thoughts of Jesse Livermore, which have been great speculators of the market of all times, because the crypto market, can be similar to the Stock Market, where the market crypto volatility is what differentiates the Stock Market, of course, the Stock Market movements are much more market capitalization and movements are slower. But in general terms it is best to learn to understand the market so that our capital increases and does not have large losses.

[akram143]

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 these three statement because each and every trader should follow this type of things only he can make his trading journey more peacefully with lots of income otherwise in somewhere you will stuck and your development was reduced that's why following this statement is important.

[BlackPanda]

I think that in addition to everything previously mentioned in OP, it is necessary to emphasize that the important thing in the trade is to understand it, to know how to read the Volume, to know and to be planning the Strong Hands, to know how to read the Order Book.

In my case I analyze the market based on Wyckoff's philosophy, and I also use some thoughts of Jesse Livermore, which have been great speculators of the market of all times, because the crypto market, can be similar to the Stock Market, where the market crypto volatility is what differentiates the Stock Market, of course, the Stock Market movements are much more market capitalization and movements are slower. But in general terms it is best to learn to understand the market so that our capital increases and does not have large losses.

Learning a variety of trading strategies is indeed an added value, because then a trader will be far more prepared to face various situations.
I always see this situation as a challenge, yes it's true that paying attention to the market properly is a must.
If a trader cannot analyze and pay attention to the market well then he will be close to failure.

[BlueStackz]

Greed is also important in trade.  Many people have lost good sum of money from trading reason because of greed. they tends to over wait for profit even after meeting their target which is not good for trade

But, you just said greed is important in trade and if greed is that important, then those people you talked about should not have lost good sum of money from trading, if they lost money and did not take their investment when they ought to have taken it, then it absolute greed that just destroyed them.

We just need to be flexible, and not too rigid about a profit, even if we had set our trade so high to take profit, we need to listen to TA and FA more and not our instinct which instinct has never help anyone survive trading, if we aim at little profit, it is better that the big profit catches us by surprise than aiming at big profit and end up disappointing us.