Trading Psychology and tips

[Woodie]

Several valid points in the OP which I totally agree with, but another thing that tends to mess around with our psychology is a losing trade...

You know how you get to analyze your charts and pinpoint areas where you will be buying or selling, but trade goes against your A setup and think your strategy or analysis did not work and choose to jump on another strategy to try to catch some winners... well the problem isn't always about the strategy, sometimes external factors beyond our control like news come into play which affect a potential winning trade and turns it to a losing trade and should tell us we must accept that we shall not always win, losses are part of trading!

If a trader is mentally not strong, then he isn’t fit for the crypto market I guess.

Fake it till you make it 

Otherwise, mechanical trading is the way to go to counter one's shortfalls of trading!!

[1715052286]

1715052286

[bitLeap]

Several valid points in the OP which I totally agree with, but another thing that tends to mess around with our psychology is a losing trade...

You know how you get to analyze your charts and pinpoint areas where you will be buying or selling, but trade goes against your A setup and think your strategy or analysis did not work and choose to jump on another strategy to try to catch some winners... well the problem isn't always about the strategy, sometimes external factors beyond our control like news come into play which affect a potential winning trade and turns it to a losing trade and should tell us we must accept that we shall not always win, losses are part of trading!

If a trader is mentally not strong, then he isn’t fit for the crypto market I guess.

Fake it till you make it 

Otherwise, mechanical trading is the way to go to counter one's shortfalls of trading!!

Yes I agree that trading is not always an internal factor, but in reality external factors will be very influential. It could be that when we analyze and we enter the market there is news that will suddenly affect the market. Surely it will change what we have analyzed about price movements. We must be prepared for that and indeed mentally will affect, we must be able to quickly decide whether we will continue our trading or we will stop there and get out of the market as quickly as possible. Decisions like this in my opinion are also very important and also experience will certainly greatly affect decision making.

[Mauser]

Win Always
“You may lose a battle but always win the war”
Let your number of winning trades always outnumber your lost trades. An average of 60% winning trades (weekly or monthly) makes you a profitable trader and keeps you winning.

That is a lot of information in one thread and can be helpful for anybody that is struggling with his mindset. Remaining positive and trying to influence our psychology to avoid negative thoughts is important when it comes to trading. I learned most of these things through gambling, as I started regular gambling when I turned 18 and there were a lot of tools especially in poker that can be also used when trading stocks and cryptos. A winning trader doesn't always need to have 60% trades that are right, this would assume that you always spend the same amounts on your trades and your losses and profits are similar in sizes. This is not really realistic and I wouldn't recommend anybody to focus on such a statistic. It's okay to lose money on 9 out 10 trades, as long as the profits in the one trade is larger than all the losses combined. Risk management is an important tool when it comes to trading, because it tries to limit the amount we are losing in our failing trades. At least for me this was a more helpful approach, try to maximise the profits you are getting from your winning trades and avoid and minimise losses as much as possible.

[hd49728]

Remaining positive and trying to influence our psychology to avoid negative thoughts is important when it comes to trading. I learned most of these things through gambling, as I started regular gambling when I turned 18 and there were a lot of tools especially in poker that can be also used when trading stocks and cryptos.

Practically if you are too positive or over negative, your thinking and action will be biased then no longer accurate. As a trader, investor or gambler, you should keep your mood as most neutral as possible then you can make better decisions or at least avoid bad mistakes because of emotional, psychological effects.

Yes I agree that trading is not always an internal factor, but in reality external factors will be very influential. It could be that when we analyze and we enter the market there is news that will suddenly affect the market. Surely it will change what we have analyzed about price movements

We are not whales and we are not manipulating the market. What we think about the market can be what whales are setting up their manipulations and they even see it better than us. So if we believe that what we see and think about the next movement of market is correct, whales can do opposite manipulation on the market. Then if we gamble with leverage, we will be trapped by whales and exchanges will liquidate our positions. It is not good and can be nightmare if we make loan to invest, trade and use very high leverages. Because a higher leverage, a higher risk to be liquidated and a bigger loss we will get at the end.

[freedomgo]

If a trader is mentally not strong, then he isn’t fit for the crypto market I guess. Not only in crypto trading, but also in other types of trading, the risk to make profit always remains at higher level. So as we know that when the risk is high, the chances of getting losses are also high. So if a trader doesn’t think about this mentally, then his psychology will be affected by the losses. So he needs to control the emotions and trade with all the possibilities. He should be ready for all the outcomes that the market will give him while placing any trades.

A trader should be mentally and emotionally fit, otherwise if one lacks, he will not be a reliable and profitable trader. But I don’t think these will be easily developed on a trader. He might endure consistent losses at first before he will achieve good mental and emotional aspects. And once they’re already capable mentally and emotionally, trading will be more on gains and with less amount of losses.

[Casdinyard]

Interesting but what would be more interesting would be to know for sure if you really are a trader and also one of the few who earn money in the long term, because what you have written can be done by gathering information on the internet and some experience in trading but without being a consistent winner like the vast majority. Seeing the few posts that you have written in this section since you registered and that in none of them you talk about specific trades or put charts, I think it is the latter.

Is there a technicality you need to fall under for you to be considered a trader? As far as I know as long you have made consistent trades or have traded for the most part of your investment journey you can be considered a trader right then and there. Gathering knowledge is just part of the process, it's not the result itself, simply earning or doing a single trade doesn't make you a trader either since I bet everyone here has made a single trade at least once in their life and they don't go telling everyone they trade crypto.

Just as long as you're in this industry for the sole purpose of earning money through trading currencies, you're considered a trader, no other technicality or rules to follow to be recognized by everyone. I don't think it's as important as a lot of you guys are trying to portray especially when the very topic is all about the Psychology of trading

[tygeade]

Interesting but what would be more interesting would be to know for sure if you really are a trader and also one of the few who earn money in the long term, because what you have written can be done by gathering information on the internet and some experience in trading but without being a consistent winner like the vast majority. Seeing the few posts that you have written in this section since you registered and that in none of them you talk about specific trades or put charts, I think it is the latter.

Is there a technicality you need to fall under for you to be considered a trader? As far as I know as long you have made consistent trades or have traded for the most part of your investment journey you can be considered a trader right then and there. Gathering knowledge is just part of the process, it's not the result itself, simply earning or doing a single trade doesn't make you a trader either since I bet everyone here has made a single trade at least once in their life and they don't go telling everyone they trade crypto.

Just as long as you're in this industry for the sole purpose of earning money through trading currencies, you're considered a trader, no other technicality or rules to follow to be recognized by everyone. I don't think it's as important as a lot of you guys are trying to portray especially when the very topic is all about the Psychology of trading

I do agree that if you trade, as long as you are trading, you are a trader. There isn't anything else that is required to be considered a trader, the meaning of trader is literally someone who trades that's it. Not everyone may deal with a lot of money, not everyone may make thousand trades per day, nor maybe even make a profit while trading but as long as they trade, that makes them a trader.

I personally do not trade all that much, maybe I am a bad example because I do not consider myself a trader because I also hold long term majority of my investments, but if I wanted to call myself a trader, I would be able to say that because I trade at least few times a week and that should be more than enough to be a trader.

[crwth]

There are a lot of things to consider when talking about trading psychology but it's going to make sense only if you do it. I believe that you are going to be successful if you are to continue and be consistent with how the psychology is whether or not it's with trading.

The emotions that we experience are the things that I think will hinder us so much. We need to know how to handle it.

[|MINER|]

Your points are very logical psychologically. But I don't agree with everything.  I think the good aspects of trading should be highlighted.  There are many points that can make a new trader panic. His confidence can decrease.  If someone wants to do trading then he should first know about bitcoin. Then he should know about the market. He should have a lot of understanding about hold and sell.  Be confident. Learn to trust yourself, be mentally strong.

[Natsuu]

--

If a trader is mentally not strong, then he isn’t fit for the crypto market I guess.

Fake it till you make it 

Otherwise, mechanical trading is the way to go to counter one's shortfalls of trading!!

It is not even faking something. For me, it's more like acting like the kind of person that you wanted to be. Yes, you might lack some concepts or understanding but you still can survive and surpass the challenge by figuring things out along the way. But if your personality cannot withstand all the adversity, drawdown, losing streaks, and guilt with human error then your chance to quit and fail is greater.

You are not faking it as a trader. You are just putting a new identity to yourself as a successful and profitable one. Because how you see yourself greatly affects how you act and behave in front of the markets volatility.

[Blowon]

simply put, those who trade with emotion usually don't understand chart patterns. So use feelings in trading. believe this coin will rise without looking at the existing charts and data. even though it is very important. another second thing is asset management. Maybe it doesn't matter too much for those with capital under $100. However, if the capital is more than that, in my opinion you have to use good management in trading.

[Bitcoin_people]

Win Always
“You may lose a battle but always win the war”
Let your number of winning trades always outnumber your lost trades. An average of 60% winning trades (weekly or monthly) makes you a profitable trader and keeps you winning.

Trading is not always possible to make profit especially few people can be successful in crypto trading. Moreover it is not possible to win all the time many times it is seen that people place bets in gambling and they do not win but rather they lose just like in the case of trading it is not possible to win all the time. If a trader can make 60% monthly profit by trading then it is definitely a successful venture for him and he will get known as a wise trader. Moreover, those who have a special understanding of the market can definitely gain more percentage because they have better knowledge. Of course, always a profitable trader will not adopt his alternative methods and using the methods he has acquired will be profitable in the business field and that person will be successful, and the trader who adopts good methods will be able to win the trade.

[ancafe]

Win Always
“You may lose a battle but always win the war”
Let your number of winning trades always outnumber your lost trades. An average of 60% winning trades (weekly or monthly) makes you a profitable trader and keeps you winning.

Easy to say but difficult to implement, trading is much riskier if one does not have the knowledge. The most important thing is that you have to know whether trading is something suitable to do or not, because not many people have the ability to survive when the trades they make result in losses. Psychology will have an impact before we get involved in trading risks. No battle is always won by a group of people and worst case you get shot and die.

This illustration may also apply when you trade because you cannot always make a profit and there are times when you suffer multiple losses when trading. How can we win more in trading than lose, because without us realizing there are times when the right position in trading will result in losses, if we don't change our trading patterns at any time.

[HONDACD125]

Easy to say but difficult to implement, trading is much riskier if one does not have the knowledge. The most important thing is that you have to know whether trading is something suitable to do or not, because not many people have the ability to survive when the trades they make result in losses. Psychology will have an impact before we get involved in trading risks. No battle is always won by a group of people and worst case you get shot and die.

This illustration may also apply when you trade because you cannot always make a profit and there are times when you suffer multiple losses when trading. How can we win more in trading than lose, because without us realizing there are times when the right position in trading will result in losses, if we don't change our trading patterns at any time.

It is not only trading without knowledge that is risky, but all business and investments where you do not have knowledge can prove to be risky. My own experience says that trading is very difficult if you do not have good experience and complete expertise in trading. So you should never get into trading, as many people think about it.

 We cannot make money or trade easily unless we know about market strategies and psychology and traders know well. So, in terms of making yourself comfortable, it is definitely about understanding the fluctuations of the market, your decisions about trading, your interest and the mindset of the people/traders who are directly involved.

[Hamphser]

Easy to say but difficult to implement, trading is much riskier if one does not have the knowledge. The most important thing is that you have to know whether trading is something suitable to do or not, because not many people have the ability to survive when the trades they make result in losses. Psychology will have an impact before we get involved in trading risks. No battle is always won by a group of people and worst case you get shot and die.

This illustration may also apply when you trade because you cannot always make a profit and there are times when you suffer multiple losses when trading. How can we win more in trading than lose, because without us realizing there are times when the right position in trading will result in losses, if we don't change our trading patterns at any time.

It is not only trading without knowledge that is risky, but all business and investments where you do not have knowledge can prove to be risky. My own experience says that trading is very difficult if you do not have good experience and complete expertise in trading. So you should never get into trading, as many people think about it.

 We cannot make money or trade easily unless we know about market strategies and psychology and traders know well. So, in terms of making yourself comfortable, it is definitely about understanding the fluctuations of the market, your decisions about trading, your interest and the mindset of the people/traders who are directly involved.

Whether we do like it or not which majority of those newbie traders would really be that just focusing that only on how to make money and trying out to think that they could become rich in no time. They do usually

seeing those other peoples gains specially on social media which those people making up tons without even trying out to realize on how hard it is on making even on a single profitable trade and this is where self
knowledge and expertise would really be kicking in.You would really be of course needing it because if you dont have these things then for sure you would really be ending up on tons of mistakes
and errors on which most people do really commonly experience.Somewhat there are really conditions which are inevitable and this is where errors and mistakes is really that something that cant be avoided
on which means that this is one of the learning things that you could be able to obtain.

On your next time then you do already know on what you should gonna do since you do have the experience and knowledge. It is really just that you should not make
yourself trying out to be perfectionist because this is where things turns out to be salty. 

[youdacapt]

Tips on Trading Psychology

Your writings are very knowledgeable one so i want to add a thing or two. In your teachings, i feel like you did not mention the most important of "trading" Which is to take profits. To excel as a trader, you must find the balance between when to take profit, and you must always take profit.

Refusal to take profits when it presents itself means you are setting up your trade to fail and putting your skills down. I have read few comments saying trading is "stressful", i dont believe so, treat trading as a hobby, an occupation; enjoy trading and focus on taking profits every time too; trading is something you must "enjoy" doing, not "endure"

[beerlover]

Easy to say but difficult to implement, trading is much riskier if one does not have the knowledge. The most important thing is that you have to know whether trading is something suitable to do or not, because not many people have the ability to survive when the trades they make result in losses. Psychology will have an impact before we get involved in trading risks. No battle is always won by a group of people and worst case you get shot and die.

This illustration may also apply when you trade because you cannot always make a profit and there are times when you suffer multiple losses when trading. How can we win more in trading than lose, because without us realizing there are times when the right position in trading will result in losses, if we don't change our trading patterns at any time.

That's such a true thing, it is easy to say it but not easy to do it at all. I personally would love to be like that but trading is harder than most people think, and we should be more careful about it than we have been so far and that is going to change a lot. I know that things are not that easy and there are some stuff that could make it change a lot but if we are careful about it then we are going to be fine.

I personally do not really feel like there is going to be anything that would not be all that well, and should definitely reach to a point where we could end up with a greater return and by the looks of it we are going to end up with a good profit if we just focus on learning how to be a better trader.

[KingsDen]

I

Not only that but the higher the leverage, the lower the percentage of traders who consistently make money. In other words, by using leverage you get closer to a 100% probability of failure and the more leverage you use, the closer to 100%. Let's see without leverage, only
As I say, add leverage and you'll be close to a 100% failure rate.

That is what most traders who lost money don't understand,  This was practically what I was doing using a high leverage to trade when I started up as a newbie trader,  Actually non of those trades was in the money, sometimes I fuckinly increase the leverage to 50×,  and that was the worst time in my trading journey and the market fucked with me, got screwed back to back until I learn.

To be more profitable, Simply apply lower leverage be patient, and ride your account up slowly if have a working strategy.

Some people are so crazy about leveraging because they think that they have a working strategy.  But it does always end well when one is fond of using higher leverage when trading. Patience is a virtue. If one goes slow and steady with a working strategy, it will only take time to be in huge profits. But using a higher leverage in order to influence your profits faster can only lead to fatality.

Evaluate your Trading Strategy
The idea behind trading is to make profit, therefore, the trading strategy you choose to deploy has to reflect positive growth on your equity, if it doesn’t, then you should consider re-evaluating it to something better.

It is fine to re-evaluate your strategy once a while. Do no relax and continue doing one thing because it is giving you results.  There might be better unexplored results. That is why it is good to re-evaluate your strategy either by testing it against other strategy (ies) and know the level of its effectiveness.

[stomachgrowls]

Easy to say but difficult to implement, trading is much riskier if one does not have the knowledge. The most important thing is that you have to know whether trading is something suitable to do or not, because not many people have the ability to survive when the trades they make result in losses. Psychology will have an impact before we get involved in trading risks. No battle is always won by a group of people and worst case you get shot and die.

This illustration may also apply when you trade because you cannot always make a profit and there are times when you suffer multiple losses when trading. How can we win more in trading than lose, because without us realizing there are times when the right position in trading will result in losses, if we don't change our trading patterns at any time.

That's such a true thing, it is easy to say it but not easy to do it at all. I personally would love to be like that but trading is harder than most people think, and we should be more careful about it than we have been so far and that is going to change a lot. I know that things are not that easy and there are some stuff that could make it change a lot but if we are careful about it then we are going to be fine.

I personally do not really feel like there is going to be anything that would not be all that well, and should definitely reach to a point where we could end up with a greater return and by the looks of it we are going to end up with a good profit if we just focus on learning how to be a better trader.

You would really be finding out for yourself on how hard it is, it is really that true that giving advises would really be that so simple on which we could really be able to point out those important things and telling them about that sensible things on what must done but if you are into their shoes then you wouldnt really be able to know on what you should gonna do. Trading is something that cant really be precisely be that you do able to get it on first try or simply being a newbie. You would definitely be experiencing those common problems along the way and its true that psychological and emotional aspect would really be the main issue that you would really be able to encounter on which you would really be needing adapt and really make yourself that versatile.

Tips? There's no such thing about tips and tricks because what you do really need is to find out for yourself on what things should really be done and what things should be avoided.
This could really be acquired through real experience and this is something that you should really be that minding to do so. Sustain and survive on which this would be your main
priority. Market is unpredictable and this is why its better to have that kind of mindset on the time you do decide on touching up this market.

[Timmzzy]

I

Not only that but the higher the leverage, the lower the percentage of traders who consistently make money. In other words, by using leverage you get closer to a 100% probability of failure and the more leverage you use, the closer to 100%. Let's see without leverage, only
As I say, add leverage and you'll be close to a 100% failure rate.

That is what most traders who lost money don't understand,  This was practically what I was doing using a high leverage to trade when I started up as a newbie trader,  Actually non of those trades was in the money, sometimes I fuckinly increase the leverage to 50×,  and that was the worst time in my trading journey and the market fucked with me, got screwed back to back until I learn.

To be more profitable, Simply apply lower leverage be patient, and ride your account up slowly if have a working strategy.

At first i wasn't this greedy type of a trader but the problem i was having then was my strategy not going well with me, so went round doing it the wrong way by trying to learn every strategy i see on youtube and trust me it messed with me badly. But now what i did was to master it, get good with it and stay discipline.