Trading Psychology and tips

[Beerwizzard]

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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.

I'll be a devil's advocate and say that leverage doesn't change anything as long as liquidation price is below your stop loss. And x50 is obviously too mush as your max stop loss will be only -2%. You should just have your strategy and keep in mind entry and exit points.

For instance, if your total deposit is $10k and you can afford losing 3% of it (no matter on a stop loss or liquidation) then you can either buy $3k worth of the coin and set a SL for -10% or just use $300 of your own and take x10 leverage.

[Silberman]

It is easy to loose focus of what is important when trading. Making money which is the aim of being a trader is a good thing to have in mind as end result, but your focus as a trader should be faced on executing the strategy that you have formulated and executing it to perfection that you are then able to make profit as reward for the good strategy used. Traders who focus fully on making money instead of strategy will not enjoy the process of trading which is meant to be enjoyed and will not be able to easily observe when a strategy that they use is no longer as effective as it was.

Correct, anyone that becomes successful in almost any activity is concentrated more than anything on the process, as they know very well that if they do things correctly then sooner or later the good results will follow, while those that care only about the results will be happy they earned any money even if they made a lot of mistakes along the way, but when the process is so inconsistent and full of mistakes then the positive results will soon disappear and be replaced by negative results.

[wallet4bitcoin]

It is easy to loose focus of what is important when trading. Making money which is the aim of being a trader is a good thing to have in mind as end result, but your focus as a trader should be faced on executing the strategy that you have formulated and executing it to perfection that you are then able to make profit as reward for the good strategy used. Traders who focus fully on making money instead of strategy will not enjoy the process of trading which is meant to be enjoyed and will not be able to easily observe when a strategy that they use is no longer as effective as it was.

Correct, anyone that becomes successful in almost any activity is concentrated more than anything on the process, as they know very well that if they do things correctly then sooner or later the good results will follow, while those that care only about the results will be happy they earned any money even if they made a lot of mistakes along the way, but when the process is so inconsistent and full of mistakes then the positive results will soon disappear and be replaced by negative results.

Just one quote to summarise your point, consistency births mastery.


Even when your intent isn't to master a particular thing, whether trade or skill, your consistency in it invites the mastery part of it. It is a natural phenomenom and consistent traders can tell you this on a factual basis.

[ChuckBuck]

What I'm about to say is something not everyone might agree with, but hear me out. The concepts of 'Greed and Fear' are evolutionary leftovers, nearly primitive. Many has prospered or failed for millennia depending on how these factors are balanced by them .

Look at how resource management was done in old societies. It was a mix of careful planning and quick decisions. Your "Greed" comes from a desire to gather resources, while your "Fear" comes from a natural need to protect. In trading, you have to be aware of these instincts and change them to fit the current world.

Risk management isn't just about cutting losses; it's about understanding patterns, similar to the way many businessman have risen and fallen based on their management of environmental challenges. In the crypto world, that environment is the market. If you're not adapting, you're perishing.

Societies have always moved based on collective decisions, shared knowledge, and reactions. The market? It's not different. Your trading strategies should be dynamic, keeping an ear to the ground, sensing the undercurrents of the global collective of traders.

The internet is a mess. It's like the invention of farming - it could lead to prosperity or utter collapse if not managed right. Filter the noise, focus on the essentials, and use that accumulated knowledge to your advantage.

Financial crisis have been lessons for future generations. Similarly, every loss in trading is a stepping stone. Analyze, refine, and move forward. 

[Natsuu]

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Just one quote to summarise your point, consistency births mastery.


Even when your intent isn't to master a particular thing, whether trade or skill, your consistency in it invites the mastery part of it. It is a natural phenomenom and consistent traders can tell you this on a factual basis.

Not only in consistently doing such but also in doing a constant review. What I mean by that is if you shoot a thousand free throws with the same kind of shot continuously, consistently, yes you will improve because you are practicing it. But if you compare it by shooting a hundred free throw but you are constantly adjusting what's working, what's not working, what technique you should focus more, you are more likely to improve faster and better.

Same as to trading, with its changing environment. Along with trading psychology, it's very helpful to have a diary. First to know yourself, and second to know what to work on more in the future. Adaptability is the key. You don't just repeat anything to gain mastery. Mastery requires mastering oneself by also reviewing our own.

[jostorres]

It is easy to loose focus of what is important when trading. Making money which is the aim of being a trader is a good thing to have in mind as end result, but your focus as a trader should be faced on executing the strategy that you have formulated and executing it to perfection that you are then able to make profit as reward for the good strategy used. Traders who focus fully on making money instead of strategy will not enjoy the process of trading which is meant to be enjoyed and will not be able to easily observe when a strategy that they use is no longer as effective as it was.

Correct, anyone that becomes successful in almost any activity is concentrated more than anything on the process, as they know very well that if they do things correctly then sooner or later the good results will follow, while those that care only about the results will be happy they earned any money even if they made a lot of mistakes along the way, but when the process is so inconsistent and full of mistakes then the positive results will soon disappear and be replaced by negative results.

It's also important not to lose concentration just because of initial failures. A lot of people enter the market with a lot of enthusiasm and excitement but they exit the market after they face a couple of losses initially which is wrong. Wins and losses are a part of everything, you won't always keep getting successful in your life but you are not supposed to give up just because you are not able to get success very easily, you will need to work for it.

So, those who stay in the market and keep trying and grinding and working on themselves and their skills and strategies tend to get success some day, because they don't give up just because they can't do it easily, success doesn't come your way just like that but you need to reach it.

[Japinat]

With the losses, that's how a trader grows. If no trader will have their own losses, they won't learn new strategies and what's best for them. I agree that these losses are like entries to check our mistakes and as well as the gateway to improve.

Trust your Analysis
As long as you do you due diligence on your setup after analyzing, take the shot. It is never a guarantee but once your setup says ‘go’, go with it.

About this, sometimes I don't trust my own analysis but this is also like trusting our own analysis. It may not be as perfect as the others but you're right that if you think that you're doing your analysis flawlessly then follow and see what will be the result of it.

You know if you aim to be a professional trader, there’s no way but to trust our own analysis no matter how imperfect it seems because what we have learned and gained as a trader will definitely reflect on the result of the analysis we made. If you are think you are always in doubt, then don’t pursue your trading career. You will only lose in the long run if you never trust your own instinct and trading analysis.

[yhiaali3]

Yes, the important points for me can be summarized: The most important emotions that must be controlled for a trader are fear and greed. This can be done through discipline and risk management.

The most important point is “your losses, your lessons.” Yes, this is absolutely true because losses are the ones that give you the biggest practical lessons by feeling the real pain as a result of the loss. These losses give you real experience and refine your experiences.

Finally, if you come out with 60% profitable trades, this means that you are a winner. Yes, it is true because even the most experienced and famous traders do not have 100% successful trades, so the successful trader must work to increase this percentage as much as he can.

[Nrcewker]

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.

[macson]

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.

honestly, this is the conclusion of the topic you created.  there are 30 days in a month, if you trade every day then losing 14 times during a month is very normal, a professional trader is not calculated from one hundred percent accuracy of his predictions but from what percentage of his winnings each week or each month ^{(depending on the period the trader's target)}, recapitulating how much you lose and win in a week or month is part of risk management and traders who always win are those who master it and practice it in every trading activity they do.

[TheSpiral]

Greed is the desire for more profit, often characterized by a fact-less believe that a market condition will continue in the direction of profit for his benefit.
Fear, contextually, is the refusal to allow the researched output-birthed setup to play out, thereby terminating the process abruptly irrespective of loss or gains accrued. 

Traders or investors often think that once a price goes higher then Bull run initiate and it will never goes down again which means that they are wishing to be more profitable and are not thankful for what they have.

Instead of stopping trading after consecutive losing they continuously trade for recovering their money without knowing the strategies to overcome mistakes and their wrong concept become a cause of their financial crisis

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.

Strategies can be copied and also people create their own strategies dependent on market situations. Copying someone other strategy is easy but you will have problem in using it and whenever one strategies do not work properly so you will have to change that as a single strategy is not advantageous all the time.

[_BlackStar]

-snip-

Traders or investors often think that once a price goes higher then Bull run initiate and it will never goes down again which means that they are wishing to be more profitable and are not thankful for what they have.

I don't think you can generalize that all traders and investors are the same - of course there are differences between experienced traders and investors compared to those who are just starting out. In fact it is impossible to expect prices to rise without fluctuations - and everyone must knows that.

Additionally, bullrun do not necessarily mean price increases without volatility - meaning that whenever prices rise by a certain percentage, a decline will always occur. So again - don't generalize it's all the same.

[Hamza2424]

Strategies can be copied and also people create their own strategies dependent on market situations. Copying someone other strategy is easy but you will have problem in using it and whenever one strategies do not work properly so you will have to change that as a single strategy is not advantageous all the time.

There's a point buddy as you consider that people do copy the trading strategies from the other traders but what I think is that the trading strategies we develop on our own for portfolio management and trading work more efficiently even for tier traders' trading strategy may not work for you, much effectively. As the strategy developed by the top tier traders is based on risk management, and psychology it can never meet the resemblance with the strategy you want as you care in a completely different scenario.

[Hamphser]

Strategies can be copied and also people create their own strategies dependent on market situations. Copying someone other strategy is easy but you will have problem in using it and whenever one strategies do not work properly so you will have to change that as a single strategy is not advantageous all the time.

There's a point buddy as you consider that people do copy the trading strategies from the other traders but what I think is that the trading strategies we develop on our own for portfolio management and trading work more efficiently even for tier traders' trading strategy may not work for you, much effectively. As the strategy developed by the top tier traders is based on risk management, and psychology it can never meet the resemblance with the strategy you want as you care in a completely different scenario.

We know that copytrades could really be done automatically or manually but its true that copying totally specially on manual wont really be guaranteeing out that on what the results those whom you do follow would

really be totally the same on what you do have considering that there would be other factors on which it would really be totally affecting out those outcomes from their to your own trades even
though you had copied it out but doesnt mean that it would really be sharing up on the same results and this is something that very common thing to happen and not all would really be that
having that precision and this is why it would be always preferred on trading on your own rather than on copying others which its never been recommendable.

The fact that creating with your own would really be much better since you would really be molding up yourself to be a better trader which you wont really be that relying with
others and could handle out yourself within this unpredictable market and this is something that you would needing to focus on which you could really be able to
sustain no matter what.

[Distinctin]

It is easy to loose focus of what is important when trading. Making money which is the aim of being a trader is a good thing to have in mind as end result, but your focus as a trader should be faced on executing the strategy that you have formulated and executing it to perfection that you are then able to make profit as reward for the good strategy used. Traders who focus fully on making money instead of strategy will not enjoy the process of trading which is meant to be enjoyed and will not be able to easily observe when a strategy that they use is no longer as effective as it was.

Correct, anyone that becomes successful in almost any activity is concentrated more than anything on the process, as they know very well that if they do things correctly then sooner or later the good results will follow, while those that care only about the results will be happy they earned any money even if they made a lot of mistakes along the way, but when the process is so inconsistent and full of mistakes then the positive results will soon disappear and be replaced by negative results.

I think that's already given when you decide to be a trader. Trading is a game of knowledge and skills, and the more experienced you are, the bigger chances to become successful. So you should not trade only because it's known to give us remarkable profits, but we should trade because it is our passion and we become more enthusiastic to trade because of the challenges that we will face in trading.

[Viscore]

Yes, the important points for me can be summarized: The most important emotions that must be controlled for a trader are fear and greed. This can be done through discipline and risk management.

The most important point is “your losses, your lessons.” Yes, this is absolutely true because losses are the ones that give you the biggest practical lessons by feeling the real pain as a result of the loss. These losses give you real experience and refine your experiences.

Finally, if you come out with 60% profitable trades, this means that you are a winner. Yes, it is true because even the most experienced and famous traders do not have 100% successful trades, so the successful trader must work to increase this percentage as much as he can.

This is actually why trading is damn hard and stressful. First, you need to control your emotions when we all know that emotions are uncontrollable in a human being. Once we don't feel any emotions, then it's as good as that we're no longer humans anymore. Second, we need to endure losses because that will teach us a lot and help us to improve our skills and strategies the next time time we trade. And lastly, the more losses we gained and overcome, the higher chances we are prone to success. If you come to outnumbered your losses than your gains, then consider yourself as a profitable trader already.

[mvdheuvel1983]

Backtesting is also an important aspect of trading success. Because, according to some, trading is 10% analysis and 90% psychology. You can acquire confidence if we backtest our strategy before implementing it in a live trade. If we are confident in our plan, we may be confident that we will be profitable in this manner.

I think back testing plays an important part in developing your trading strategy. Backtesting should work on low time frames like 1-5 minutes because the market condition changes very slowly. Backtesting can be time-consuming, and the time spent on it may lead to missed opportunities in the current market. Interpreting backtest results can vary, leading to different conclusions about the effectiveness of a trading strategy. Backtesting can provide a false sense of security, as it may not accurately reflect how a strategy will perform in real-time trading conditions.

- https://www.tradingview.com/chart/ES1!/ZDm421wm-5-red-flags-When-to-change-your-trading-strategy/

[KingsDen]

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.

Trading is actually not for everyone but that does not mean that it is not encouraging for people to learn the trading skill by knowing what is happening in the cryptocurrency charts and the market overall. I am not a good trader because at a time I stopped trading, but I have ideas of trading. So if I decide to be writing journals on trading I can write as many as you can think about and you will enjoy reading them, but in the real life, if I am given a system and asked to tread with some certain capital. I am certainly going to blow up the capital if care is not taken. So this shows that there is clear difference between theory and practical. You can read about it, but if you have not praticalize it and it works for you, you dare not brag about it that you are a professional trader. Many good traders do not even have time to write many articles about how to succeed in trading.

[wallet4bitcoin]

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.

I consider the trading space a highly volatile space, one must exert a high level of mental capacity to deal with what comes in engaging with it. The mentality of a trader speaks volume and is always evident in his trading result. Loses are a compulsory part of the trading business and if one incurs loses, its not for the person to feel messed up already but to understand that the market trends and speculations can deviate from the speculations and create a new part, this is always normal and traders with a circumspect understanding knows this and their mentality accommodates it.

If you have your trading psychology balanced, only then will you really enjoy trading with profitability.

[lombok]

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.

I consider the trading space a highly volatile space, one must exert a high level of mental capacity to deal with what comes in engaging with it. The mentality of a trader speaks volume and is always evident in his trading result. Loses are a compulsory part of the trading business and if one incurs loses, its not for the person to feel messed up already but to understand that the market trends and speculations can deviate from the speculations and create a new part, this is always normal and traders with a circumspect understanding knows this and their mentality accommodates it.

If you have your trading psychology balanced, only then will you really enjoy trading with profitability.

In my opinion, creating a trader's mentality is very difficult. Where someone has to go through various kinds of market attacks. People who have trading experience and analytical skills may be able to form a trader's mentality that is able to control emotions when trading. Mentality and emotions have a big influence on trading results.

I'm sure there are lots of tips and tricks in trading psychology, but if we went directly into the market our emotions and psychology would definitely be very different. Once again, all control rests solely with the trader himself.