Important Things I Wish I Had Knew Before I Started Trading

[Mr. Magkaisa]

Greetings to everyone in my forum community. I just wanted to share something from my early days of cryptocurrency trading since I didn't think of it right away. Thus, this will be quite beneficial whether you are new to the crypto market or intend to enter it. Even though we are aware that there is no quick fix for trading, by being aware of all of this, you will be better equipped to understand the market, steer clear of frequent pitfalls, and get off to a positive start with your trading career.

1. Learn to trade with just one strategy

This is one of my common mistakes that I didn't make because I was moving from one trading strategy to another and looking for the holy grail. A magical trading strategy and indicator that will give me guaranteed profit. And the tendency is that we will try many trading strategies that we can find on the internet that are new indicators that are profitable, and if they are not profitable, we will look for something new.

And we don't know that it's not all about the strategy; rather, it's more about how we execute the strategy. And many beginners do not use trading strategies; they just trade randomly based on what they see on the internet or based on their emotions. And this only happens because of a lack of understanding and knowledge about trading.

So, how do we or you do that as beginners? Of course, we need to do a back-test to know if the strategy you are using has an edge, if it has a win rate, or if it has a drawdown. When we do a manual back-test, we are training our subconscious mind to see the pattern over and over again. And besides the data we get, we also see the behavior of the assets. If you can do 1000 trades using only one trading model or strategy, then I can say that you are already a master compared to those who use 100 trades just to flow a large number. There are also some benefits that we can get here, such as the consistency of the trading strategy in how it performs under different market conditions and the confidence that it also helps us to stay disciplined.

2.  Realistic expectation-setting in trading

When I started trading, I didn't know anything about this realistic expectation. I even thought that it was a getting rich quick scheme that, once I learn it right away, I can let go of my other sources of income, and this is the financial freedom or this is the one I will replace, but I was wrong.

A lot of newbie traders don't go far from my experience with this, actually. Where they think it's easy to make money on trading by just watching a 15-minute strategy in a video tutorial, that's fine right away, and we can do that. Of course, it's not like that. So what do you expect? We should not be surprised because many people still believe in the investment scheme that I can double your money, which is not realistic in reality. So the overnight success story in crypto is more widely believed by most of the crypto community. Therefore, this creates unrealistic expectations.

That's why it's important that we have realistic expectations in the first place because we can avoid disappointment and burnout. Those who try to meet these unrealistic expectations, when they experience a losing trade, quit immediately most of the time. However, if we have realistic expectations, we understand that it takes time and losing is part of the game, and we will not give up that easily. And we will also have better decision-making, and we will only focus on long-term success. And in order to generate realistic expectations, it is necessary that we already have them from the very beginning, and we must also spend significant time regarding the market, strategy, risk management, and psychology.

3. Trading part-time may yield greater results

A typical error we make is to assume that everyone must spend their entire day in front of a computer, anxiously monitoring their trade positions. Our profit margin increases as we spend more time using the monitor. Similar to relieving pressure, we fail to recognize the advantages of working part-time because most traders view trading as a side gig or their second source of income.

As a result, there is less financial strain and the expenses are not solely reliant on trading. Afterwards, it might lead to less emotionally charged trading decisions. Steer clear of overtrading as well. Because we occasionally overdo it when we trade full-time, and instead of making a profit, we end up losing money. He therefore has benefits and drawbacks. Therefore, it would be best if we got started. Let's work on it as a side gig to gain the necessary abilities, and if that's really what you want to do, let's go full-time.

[_act_]

Some traders will not understand. The traders that have little amount of money or even high amounts of money that want to trade daily and also use leverage will always lose more than making profit. That is why they will always continue to lose. The people that have high amounts of money or maybe low amount, not using leverage but patient will make profit from the money those former traders are using to trade.

[Strongkored]

On average, traders know a lot about the theory to be able to be successful as traders, but most of them fail to apply what they already know, so they end up losing, so sometimes what we know before trading cannot completely guarantee success because the most important thing is to apply the knowledge we know consistently to be able to become successful traders who make a profit.