Table of ContentsThat's right, doing so would mean that we can't incur too many losses
1 Create a Trading Plan.
2 Take Regular Breaks.
3 Don't Quit Your Day Job.
4 Accept That You Will Lose.
5 Practice, Practice, Practice.
6 Use a Take Profit and a Stop Loss.
7 Backtest Your Trading Strategy.
Trading is 90% PSYCHOLOGY and 10% wating.
It is important to know when to stop trading to keep a healthy mindset.
Sometimes... we can get too catch up in the excitement of the market and keep trading even when we are tired or not thinking clearly.
Knowledge and Experience in the Marketplace
Individuals who attempt to day-trade without an understanding of market fundamentals often lose money. A working knowledge of technical analysis and chart reading is a good start. But without a deep understanding of the market and its unique risks, charts can be deceiving.
Do your due diligence and understand the particular ins and outs of the products you trade.
1.Cut Losses Immediately When Realizing a MistakeIt would be so obvious, because if one knows he goes the wrong way and is facing consequences too then why would someone still be testing that theory, the real question should be, what would a trader do if he made some trade mistakenly and is in profit, should he go with it or just book the profit and exit the trade? I know the answer is easy but it does not mean your trading criteria will always be right.
*For example, if you realize you've placed the wrong buy/sell order, incorrect volume, or deviated from your trading criteria, cut losses immediately. Recognizing and rectifying mistakes promptly demonstrates maturity.
This can lead to account depletion.I did not know overtrading with high volumes, can cause depletion of accounts, as I am not into future trading or I have never traded an extreme number of trades so I had no idea about it.
If a trader mistakenly places his position in the opposite direction of his technical analysis and earns a profit, the answer is clear. The trader will go with it and most likely set a take-profit target to secure the position. An experienced trader won't close his position without securing his profit. That's for sure. They will always have an action plan to avoid losses as much as they can.1.Cut Losses Immediately When Realizing a MistakeIt would be so obvious, because if one knows he goes the wrong way and is facing consequences too then why would someone still be testing that theory, the real question should be, what would a trader do if he made some trade mistakenly and is in profit, should he go with it or just book the profit and exit the trade? I know the answer is easy but it does not mean your trading criteria will always be right.
*For example, if you realize you've placed the wrong buy/sell order, incorrect volume, or deviated from your trading criteria, cut losses immediately. Recognizing and rectifying mistakes promptly demonstrates maturity.
1.Cut Losses Immediately When Realizing a MistakeIf we are going to do a trade we make sure that we do it correctly, but sometimes because of imperfections we didn't noticed it until we execute a trade. That's why we should really close the trade immediately right after we found out the mistake. It doesn't matter if we cut for a loss, what's important is to avoid the potential losses.
*For example, if you realize you've placed the wrong buy/sell order, incorrect volume, or deviated from your trading criteria, cut losses immediately. Recognizing and rectifying mistakes promptly demonstrates maturity.
5.Take Profits and Know When to StopTip No. 5 is my favorite. Yes, making profits is the main point in trading. When you achieve an acceptable profit at a certain point that you specify, it is better to take your profits immediately and not be greedy.
*Taking profits is the most crucial skill for earning a living through trading. Profits should never be ignored.
*Stick to your own trading system when taking profits. Divide your profits into multiple tiers, avoid the regret of missing out. Remember that money is still there, the market remains, and opportunities are abundant.
*Always appreciate yourself for knowing when to take profits.
Tip No. 5 is my favorite. Yes, making profits is the main point in trading. When you achieve an acceptable profit at a certain point that you specify, it is better to take your profits immediately and not be greedy.And conversely, sometimes a loss can become a profit if someone is not in a hurry to respond to FUD news. The opportunity to get a bounce position is always there, and I think a lot of people lose out on bad news or FUD.
Sometimes profit can turn into loss due to greed and not reaping profits in a timely manner. Many traders, when they see the market rising, do not reap their profits and wait to get more, but suddenly the market turns and they lose because they do not reap their profits in a timely manner.
And conversely, sometimes a loss can become a profit if someone is not in a hurry to respond to FUD news. The opportunity to get a bounce position is always there, and I think a lot of people lose out on bad news or FUD.What you say is true, but this happens with strong, reliable coins that you know that holding out can restore your position and turn the loss into profit, but this does not work with Shitcoins or new coins because holding out in your position may lead to more losses.
It's as if investors don't want to miss the moment to sell at a better price. In fact, this decision makes them lose money because the price bounced a few moments before and never reached its lowest level again. Carrying out buybacks also becomes hampered.
Profit is the main target whenever we trade, that's indisputable. Yes, make sure we start with the target at the beginning, when our target has been reached then I strongly recommend to immediately stop and take profits, because not infrequently people who experience losses are those who have reached profits but they are too greedy and then the price turns into a loss.5.Take Profits and Know When to StopTip No. 5 is my favorite. Yes, making profits is the main point in trading. When you achieve an acceptable profit at a certain point that you specify, it is better to take your profits immediately and not be greedy.
*Taking profits is the most crucial skill for earning a living through trading. Profits should never be ignored.
*Stick to your own trading system when taking profits. Divide your profits into multiple tiers, avoid the regret of missing out. Remember that money is still there, the market remains, and opportunities are abundant.
*Always appreciate yourself for knowing when to take profits.
Sometimes profit can turn into loss due to greed and not reaping profits in a timely manner. Many traders, when they see the market rising, do not reap their profits and wait to get more, but suddenly the market turns and they lose because they do not reap their profits in a timely manner.
~snip~
you know that holding out can restore your position and turn the loss into profit, but this does not work with Shitcoins or new coins because holding out in your position may lead to more losses.
These things require experience and knowledge, so I always advise beginners to take profits immediately to avoid falling into the complexities of the situation
5.Take Profits and Know When to StopAnd unfortunately, this is what sometimes makes our plans fall apart in the end, because this is related to our emotional management, especially related to our ability to stop the desire, the greediness, and also our ability to understand when to stop. Emotional management is very necessary at times like this, because we are the only ones who can control ourselves whether to continue or stop. If the conditions require us to stop and it is much better, then never mind, stop first. but if it can still be considered, then consider it carefully. Don't let us make the wrong decision and this will actually make us regret it. When we feel that the profits are sufficient, taking profits is the best way and we can start trading other pairs. From becoming greedy and actually losing that moment in the end.
*Taking profits is the most crucial skill for earning a living through trading. Profits should never be ignored.
*Stick to your own trading system when taking profits. Divide your profits into multiple tiers, avoid the regret of missing out. Remember that money is still there, the market remains, and opportunities are abundant.
*Always appreciate yourself for knowing when to take profits.
Taking profits is everyone expectation when trading. Trading is for taking profits. But you are right enough that whatever the condition, taking profits must be still controlled. We may sometimes be greedy, we may be sometimes very panic because of uncertain and unexpected market changes. that is why we often do panic sell or buy without any good analyses or consideration. Or even we are only trading with very high expectation so that we may be too greedy. hat is why, knowing when to stop is very important to manage our emotional in trading and avoid greedy act that may lead us to lose.5.Take Profits and Know When to StopTip No. 5 is my favorite. Yes, making profits is the main point in trading. When you achieve an acceptable profit at a certain point that you specify, it is better to take your profits immediately and not be greedy.
How to improve psychology in trading ? I think time will tell. Because it needs experience and along time to have skill to manage your emotions. Become a professional trader is not instant. We will lose several time and also win or gain profit several time. From that experience we will improve our psychology, not only in trading but also in investingFor new traders, it will be difficult to maintain emotional psychology when trading because learning to manage emotions such as fear and greed is important in preventing impulsive decisions. Understanding the risks involved and implementing effective risk management techniques, such as portfolio diversification and setting stop-losses, can help reduce psychological stress when trading.
Here are 5 principles to help improve your psychology when trading:In the world of trading, everyone has a different way of trading, not everyone has the same way of trading. but we have to have a strategy when we should buy and sell it, that's all we have to know about the development of the coins we buy. Focusing on one coin is good, but if you have the ability to invest more than one coin that is very good, because we can earn many times what we invest. and it's also a good idea to manage your capital to invest in the short term and long term.
1.Cut Losses Immediately When Realizing a Mistake
*For example, if you realize you've placed the wrong buy/sell order, incorrect volume, or deviated from your trading criteria, cut losses immediately. Recognizing and rectifying mistakes promptly demonstrates maturity.
2.Don't Overcrowd a Single Position with More Than 3 Trades
*Most account blowouts in trading occur due to overcrowding positions, especially with high leverage, and going against the trend during strong momentum. This can lead to account depletion.
*Overtrading often involves emotional decision-making, making it subjective. Without a clear plan for overtrading, it can become akin to emotional gambling, leading to difficulty in cutting large losses.
3.Don't Trade More Than 3 Pairs in One Day (Preferably Focus on One You Understand and Have Experience With)
*Successful traders often specialize in a specific coin or token, mastering its price movements. They consider it a gold mine. Trading fewer pairs helps develop an intuitive sense for the market, reducing the need for extensive analysis.
*Trading less frequently but focusing on quality trades often improves profits and minimizes losses in markets where you're not an expert. Even if you have a trading system, applying it to different assets can lead to different outcomes.
4.Reduce Trading Volume as Losses Increase, Balance Emotions, and Stabilize Your Mindset
*When losses exceed 3% of your account (or a predetermined threshold based on your account size), or if you lose 2 trades in a day, it's advised to stop trading temporarily. Use this break to review your losses, identify where you went wrong, and analyze how to improve.
*When you can't maintain a calm mindset and are driven by emotions, seeking revenge on the market is counterproductive. Getting emotional with the market leads to trouble.
5.Take Profits and Know When to Stop
*Taking profits is the most crucial skill for earning a living through trading. Profits should never be ignored.
*Stick to your own trading system when taking profits. Divide your profits into multiple tiers, avoid the regret of missing out. Remember that money is still there, the market remains, and opportunities are abundant.
*Always appreciate yourself for knowing when to take profits.
I'm curious if these words belong to OP, just asking haha because AI trend is one of the hot topics to create such threads, anyway if OP stands by these words and all of them are coming from his experience, it's appreciated if not this type of topics should be discouraged by posting neutral feedback. I haven't seen the active moderation of such topics which are suspicious of Ai and plagiarism.I think if you just want to comment on the OP's writing style and whether his words were generated by AI or not then you shouldn't comment directly here. Because you are getting off topic. or you are free to have an opinion about the OP's writing, but still, if you don't want to get away from the topic being discussed, then start by also adding your response about the content of the topic itself and not just a response about how the OP produced the writing. If you have suspicions or something like that, take it to the reputation board and create a topic there about things you want to express regarding topics created by AI or something like that and attach the topic you mean. Honestly, I have read the contents of the topics created by Op and I am quite impressed with his knowledge. I don't care if it is by AI or Op's own making. But I look at the benefits of writing itself so that I can use the knowledge.
It is important to know when to stop trading to keep a healthy mindset. Sometimes... we can get too catch up in the excitement of the market and keep trading even when we are tired or not thinking clearly.There was a time I complained about the funds I lost in trading synthetic to a friend of mine and he made me know that I was the full cost of everything that happened and he led me to the insight that some persons actually gamble their trade session just like the normal gambling works and he made me understand that the difference between trading and gambling is that trading is already stored data and the other is an event that we can probably control the outcome so study the data involved gives us a chance for us to actually be ahead of the trade and make profit from it rather than hope on luck like gambling.
By following these principles which you have shared we can improve our mindset when trading and have a better chance of be successful. Remember... trading isnt just about knowing the technical stuff and the market... but also about managing our emotions and staying disciplined.
There was a time I complained about the funds I lost in trading synthetic to a friend of mine and he made me know that I was the full cost of everything that happened and he led me to the insight that some persons actually gamble their trade session just like the normal gambling works and he made me understand that the difference between trading and gambling is that trading is already stored data and the other is an event that we can probably control the outcome so study the data involved gives us a chance for us to actually be ahead of the trade and make profit from it rather than hope on luck like gambling.Gambling does have a very high risk because when you make the wrong decision, it will cause all the assets you use to disappear instantly. This also happens when you trade futures or derivatives. When you guess wrongly about price movements, all your assets have the potential to be lost, but if you trade in the traditional way, you only buy coins, then save them and hold them until the price rises, then sell them. The risk will be smaller, and you will definitely get a profit.
In the world of trading, everyone has a different way of trading, not everyone has the same way of trading. but we have to have a strategy when we should buy and sell it, that's all we have to know about the development of the coins we buy. Focusing on one coin is good, but if you have the ability to invest more than one coin that is very good, because we can earn many times what we invest. and it's also a good idea to manage your capital to invest in the short term and long term.Exactly. Each trader may use a different way in trading, it depends on the trading style of the traders. But each trader must trade good coins, it determines the success in trading very much. If we trade bad coins, the values may decrease instantly. Then, we have no chance to take profits.
-I actually don't understand trading because I'm not an expert in cryptocurrency trading, there are lots of members who really understand how to take advantage of cryptocurrency.
Having good psychology in trading is not as easy as the theory says. It wasn't built in just 1 night, but it takes a long time to be able to build a good psychology in trading. It requires effort, time and energy which is no joke, which can shape a trader to have good psychology. And that self-confidence and external pressure will also affect the trader's psychology in a short time, and that is why many professional traders prefer to trade in a quiet place and away from crowds of people who can disturb their thoughts.
We must harden our minds because if we are afraid we will not be strong mentally but we will not be able to move ahead in trading. Each of us should have our own trading plan, besides having our own trading plan we must have our own proper objectives and we must determine what plan we are trading and how much risk we are taking. Apart from having our own plan, we should also check whether the decisions we are making every day are right and wrong. If we notice some wrong decision by checking wrong and right then we should act on that wrong decision. If we make wrong decisions in trading phase then we should take break and take a break and re-plan the trading and conduct the trading accordingly. If we can do trading in this way, then our psychology knowledge in trading will increase a lot.Trading must be well planned, but usually when it is running, it does not go according to what was planned. Therefore, you have to accept the risks that exist from the losses and profits that can be obtained. For me, only by trading normally can I get a lot of profit and have a smaller risk.
There was a time I complained about the funds I lost in trading synthetic to a friend of mine and he made me know that I was the full cost of everything that happened and he led me to the insight that some persons actually gamble their trade session just like the normal gambling works and he made me understand that the difference between trading and gambling is that trading is already stored data and the other is an event that we can probably control the outcome so study the data involved gives us a chance for us to actually be ahead of the trade and make profit from it rather than hope on luck like gambling.Gambling does have a very high risk because when you make the wrong decision, it will cause all the assets you use to disappear instantly. This also happens when you trade futures or derivatives. When you guess wrongly about price movements, all your assets have the potential to be lost, but if you trade in the traditional way, you only buy coins, then save them and hold them until the price rises, then sell them. The risk will be smaller, and you will definitely get a profit.
Having good psychology in trading is not as easy as the theory says. It wasn't built in just 1 night, but it takes a long time to be able to build a good psychology in trading. It requires effort, time and energy which is no joke, which can shape a trader to have good psychology. And that self-confidence and external pressure will also affect the trader's psychology in a short time, and that is why many professional traders prefer to trade in a quiet place and away from crowds of people who can disturb their thoughts.
-snip-
In addition, you need confidence to master everything. A trader who doesn't have confidence on what they have learn often don't do well because they don't have the mind to set up a trade they have learned but if you summon the courage to work on that confidence, everything in trading will be smooth and you wouldn't be afraid of anything.
Self-confidence is also one of the most important factors in trading that can make a trader successful. Because as you said, when someone doesn't have self-confidence, it makes it difficult for them to place a position in the market because they worry that the analysis they are doing is wrong. Or when the market is in a bearish position, they quickly cut-loss because they are too afraid that a bearish market could erode their money. Therefore, self-confidence is an important thing for traders to master.
Yes, self-confidence is an important factor in trading, I agree with that. However, we also need to remember that we should not have excessive self-confidence, because that will lead us to the brink.Self-confidence is also one of the most important factors in trading that can make a trader successful. Because as you said, when someone doesn't have self-confidence, it makes it difficult for them to place a position in the market because they worry that the analysis they are doing is wrong. Or when the market is in a bearish position, they quickly cut-loss because they are too afraid that a bearish market could erode their money. Therefore, self-confidence is an important thing for traders to master.
Agreed mate, Self-confidence is really important in anything. Not only in trading, but also in investing. We should have Self-confidence, keep calm and don't panic when the market goes down. I think It needs knowledge and experience will make us more
self-confident.
Having good psychology in trading is not as easy as the theory says. It wasn't built in just 1 night, but it takes a long time to be able to build a good psychology in trading. It requires effort, time and energy which is no joke, which can shape a trader to have good psychology. And that self-confidence and external pressure will also affect the trader's psychology in a short time, and that is why many professional traders prefer to trade in a quiet place and away from crowds of people who can disturb their thoughts.Emotions do not always lead to losses. Sometimes they help to increase profits, but then this is usually associated with unjustified risks, which is not a sign of professionalism.
Agreed mate, Self-confidence is really important in anything. Not only in trading, but also in investing. We should have Self-confidence, keep calm and don't panic when the market goes down. I think It needs knowledge and experience will make us more
self-confident.
a very good topic for all members and for beginner traders, because we have to have a lot of knowledge in trading, this is capital for trading, not only money capital but knowledge capital or information in trading is also important because if we don't have knowledge, then you will failed in all of this. I think knowledge and experience are number 1 compared to capital.
Trading needs experience, skill and knowledge, So we have to find all information in all forum and learn every time. Psychology in trading is important. How to manage fear and greed.It needs a long time to be a professional trader. Time will tell how about us in trading.I think trading does not only rely on experience but also relies on intelligence about analyzing cryptocurrency price movements because if you are not good at analyzing, sometimes the steps you choose will be inappropriate and make it difficult for you to make a profit. Of course, from learning to analyze cryptocurrency price movements you will gain experience in itself.
Everything is summarized in knowledge, we cannot rely on just one factor, because in trading something related to it we must be able to master in order to make the trade we do even better. Experience and knowledge will play an important role in improving our psychology in trading that is done.Trading needs experience, skill and knowledge, So we have to find all information in all forum and learn every time. Psychology in trading is important. How to manage fear and greed.It needs a long time to be a professional trader. Time will tell how about us in trading.I think trading does not only rely on experience but also relies on intelligence about analyzing cryptocurrency price movements because if you are not good at analyzing, sometimes the steps you choose will be inappropriate and make it difficult for you to make a profit. Of course, from learning to analyze cryptocurrency price movements you will gain experience in itself.
And those other learnings and ideas could really be acquired by real experience on which you would really be needing to experience the market itself for you to be able to learn up things.a very good topic for all members and for beginner traders, because we have to have a lot of knowledge in trading, this is capital for trading, not only money capital but knowledge capital or information in trading is also important because if we don't have knowledge, then you will failed in all of this. I think knowledge and experience are number 1 compared to capital.
Trading needs experience, skill and knowledge, So we have to find all information in all forum and learn every time. Psychology in trading is important. How to manage fear and greed.It needs a long time to be a professional trader. Time will tell how about us in trading.
Being psychology has to do with our emotions, when we are able to control what we see from the reality in what is at stake, we will also be able to discern on what is good for us than going for what may only entice our eyes, we also have to source for an improved ways of understanding more about crypto networks and how they functions, work or operates before we go into them in full, trading has profits and in the same way has its own risk along the way.With what you mentioned, I understand better that you want to suggest to all traders to learn all the available networks and become part of a professional trader, but as you mentioned, trading in cryptocurrency has quite high risks when carrying out wrong transactions using certain networks, which has the potential to cause assets to be lost instantly.
Trading needs experience, skill and knowledge, So we have to find all information in all forum and learn every time. Psychology in trading is important. How to manage fear and greed.It needs a long time to be a professional trader. Time will tell how about us in trading.I think trading does not only rely on experience but also relies on intelligence about analyzing cryptocurrency price movements because if you are not good at analyzing, sometimes the steps you choose will be inappropriate and make it difficult for you to make a profit. Of course, from learning to analyze cryptocurrency price movements you will gain experience in itself.
Yes Training dose not depend on exprience only. Also need intelligence about analyzing market and need knowledge about market. To improve psychology firstly need proper knowledge about trading and related market. When anyone can gather knowledge about trading and about market then psychology act properly otherwise without proper knowledge psychology can't work properly. Analysis also very important for trading. And we also need avoid emotion in trading if we want to improve physiology in trading.Trading needs experience, skill and knowledge, So we have to find all information in all forum and learn every time. Psychology in trading is important. How to manage fear and greed.It needs a long time to be a professional trader. Time will tell how about us in trading.I think trading does not only rely on experience but also relies on intelligence about analyzing cryptocurrency price movements because if you are not good at analyzing, sometimes the steps you choose will be inappropriate and make it difficult for you to make a profit. Of course, from learning to analyze cryptocurrency price movements you will gain experience in itself.
Yes Training dose not depend on exprience only. Also need intelligence about analyzing market and need knowledge about market. To improve psychology firstly need proper knowledge about trading and related market. When anyone can gather knowledge about trading and about market then psychology act properly otherwise without proper knowledge psychology can't work properly. Analysis also very important for trading. And we also need avoid emotion in trading if we want to improve physiology in trading.
I agree with your opinion we also need to avoid emotion in trading if we want to improve physiology in trading. We should have good emotion management, Sometimes during trading we will have greedy and fear. Greedy will make us lose a lot and fear will also have bad emotions because we don't take the risk or opportunity. A professional trader must have knowledge, experience and good analysis.Emotions can destroy everything, and you need to remember that those who are greedy can also destroy themselves. At least just follow the flow and take just enough profit opportunities, and don't force it too much because in cryptocurrency, if you can't control yourself, all bad things can happen. I think they are those who can control their emotions and know the right time to enter and exit with the profits they get.
Experience only occurs because of our habit of analyzing price movements of the coins we use. Apart from analytical skills, knowledge, we must have good emotional management. That's what I read advice from several senior members here.
Take Profits and Know When to StopMost people don't actually know when to stop and call a day when trading, I guess most time is due to greed of not being satisfied of what he or she as made that day or trying to recover losses really quick. The thing is that your greed emotions can lead to two ways either making more profit or ending with more losses. But most time is losses, during your trading you found out you have made some good Profits you can just give it a break first. And same goes when you making losses, stop for a while to get your head back in the game than to start making rash decisions that would end with more losses .
Take Profits and Know When to StopMost people don't actually know when to stop and call a day when trading, I guess most time is due to greed of not being satisfied of what he or she as made that day or trying to recover losses really quick. The thing is that your greed emotions can lead to two ways either making more profit or ending with more losses. But most time is losses, during your trading you found out you have made some good Profits you can just give it a break first. And same goes when you making losses, stop for a while to get your head back in the game than to start making rash decisions that would end with more losses .
yes is very vital to have good emotions management, because we can't manage to our emotions it might just open a gate way to more losses. That why trading not so something you can just jump in without thinking which is wrong.I think when trading greed turns into gambling, we will get big profits if the price rises according to our target. but we can also lose a lot if the price goes down. Emotional management needs experience and this is very important.Take Profits and Know When to StopMost people don't actually know when to stop and call a day when trading, I guess most time is due to greed of not being satisfied of what he or she as made that day or trying to recover losses really quick. The thing is that your greed emotions can lead to two ways either making more profit or ending with more losses. But most time is losses, during your trading you found out you have made some good Profits you can just give it a break first. And same goes when you making losses, stop for a while to get your head back in the game than to start making rash decisions that would end with more losses .
yes is very vital to have good emotions management, because we can't manage to our emotions it might just open a gate way to more losses. That why trading not so something you can just jump in without thinking which is wrong.Trading must be full of consideration and of course you have to use a cool head because if you trade using emotions you will have the potential to take the wrong steps. At least you have to look deeper into the total supply of the coin to the product being developed, so that when both are good then will provide good potential for the long term.
Here are 5 principles to help improve your psychology when trading:
1.Cut Losses Immediately When Realizing a Mistake
*For example, if you realize you've placed the wrong buy/sell order, incorrect volume, or deviated from your trading criteria, cut losses immediately. Recognizing and rectifying mistakes promptly demonstrates maturity.
2.Don't Overcrowd a Single Position with More Than 3 Trades
*Most account blowouts in trading occur due to overcrowding positions, especially with high leverage, and going against the trend during strong momentum. This can lead to account depletion.
*Overtrading often involves emotional decision-making, making it subjective. Without a clear plan for overtrading, it can become akin to emotional gambling, leading to difficulty in cutting large losses.
3.Don't Trade More Than 3 Pairs in One Day (Preferably Focus on One You Understand and Have Experience With)
*Successful traders often specialize in a specific coin or token, mastering its price movements. They consider it a gold mine. Trading fewer pairs helps develop an intuitive sense for the market, reducing the need for extensive analysis.
*Trading less frequently but focusing on quality trades often improves profits and minimizes losses in markets where you're not an expert. Even if you have a trading system, applying it to different assets can lead to different outcomes.
4.Reduce Trading Volume as Losses Increase, Balance Emotions, and Stabilize Your Mindset
*When losses exceed 3% of your account (or a predetermined threshold based on your account size), or if you lose 2 trades in a day, it's advised to stop trading temporarily. Use this break to review your losses, identify where you went wrong, and analyze how to improve.
*When you can't maintain a calm mindset and are driven by emotions, seeking revenge on the market is counterproductive. Getting emotional with the market leads to trouble.
5.Take Profits and Know When to Stop
*Taking profits is the most crucial skill for earning a living through trading. Profits should never be ignored.
*Stick to your own trading system when taking profits. Divide your profits into multiple tiers, avoid the regret of missing out. Remember that money is still there, the market remains, and opportunities are abundant.
*Always appreciate yourself for knowing when to take profits.
When it comes to trading is all about discipline approach and learning to country emotions. There are few tip to improve trading psychology.
- Learn from your mistake
-Keep trading plan and stick on it.
-avoid overreacting to market volatility.
-trade with money you can afford to lose
increase your chances of success and improve your trading psychology.
a very good topic for all members and for beginner traders, because we have to have a lot of knowledge in trading, this is capital for trading, not only money capital but knowledge capital or information in trading is also important because if we don't have knowledge, then you will failed in all of this. I think knowledge and experience are number 1 compared to capital.
Trading needs experience, skill and knowledge, So we have to find all information in all forum and learn every time. Psychology in trading is important. How to manage fear and greed.It needs a long time to be a professional trader. Time will tell how about us in trading.
One way could be seeking professional help? I do, once every two weeks, not for trading obviously but for some other stuff and it does help a persons psychology a lot. If you feel like you have some emotional issues that chains you from becoming a better trader, asking a doctor would help. Another would be experience, because someone making their 50th trade, will never be as calm as someone who makes their 50k trade, those are just not the same. So all in all I believe that things may not look the same, it would definitely have some different situation going on. This should mean a lot for everyone.In this case, I always ask for the opinion of my friend who has been in the crypto industry for longer and is also a reliable trader because in fact he makes trading his livelihood. And I learned quite a lot from him regarding how to control my emotions in trading. And he always explains that experience is needed and as experience increases, the mentality a trader has in the market will become stronger. In theory it looks easy but in practice it is not easy at all. asking for professional help may be more helpful.
In the case of trading, basically a trader has to be very good mentally, otherwise, in an important field like trading, if he breaks down mentally, there is a high possibility of facing losses instead of profits. A trader must have the ability to control feelings and emotions. He should refrain from excessive emotions of trading multiple times in a day. A trader should never trade more than the number of trades he or she places in a day. He must deal with excess greed if extra profit comes in trading, otherwise he must face loss later.For sure on the time that you do start up then you would really be coming into a point on which you do experience this kind of breakdown or having those kind of impulsive actions due to
yes is very vital to have good emotions management, because we can't manage to our emotions it might just open a gate way to more losses. That why trading not so something you can just jump in without thinking which is wrong.Trading must be full of consideration and of course you have to use a cool head because if you trade using emotions you will have the potential to take the wrong steps. At least you have to look deeper into the total supply of the coin to the product being developed, so that when both are good then will provide good potential for the long term.
Trading needs experience, skill and knowledge, So we have to find all information in all forum and learn every time. Psychology in trading is important. How to manage fear and greed.It needs a long time to be a professional trader. Time will tell how about us in trading.
Here are 5 principles to help improve your psychology when trading:
1.Cut Losses Immediately When Realizing a Mistake
*For example, if you realize you've placed the wrong buy/sell order, incorrect volume, or deviated from your trading criteria, cut losses immediately. Recognizing and rectifying mistakes promptly demonstrates maturity.
2.Don't Overcrowd a Single Position with More Than 3 Trades
*Most account blowouts in trading occur due to overcrowding positions, especially with high leverage, and going against the trend during strong momentum. This can lead to account depletion.
*Overtrading often involves emotional decision-making, making it subjective. Without a clear plan for overtrading, it can become akin to emotional gambling, leading to difficulty in cutting large losses.
3.Don't Trade More Than 3 Pairs in One Day (Preferably Focus on One You Understand and Have Experience With)
*Successful traders often specialize in a specific coin or token, mastering its price movements. They consider it a gold mine. Trading fewer pairs helps develop an intuitive sense for the market, reducing the need for extensive analysis.
*Trading less frequently but focusing on quality trades often improves profits and minimizes losses in markets where you're not an expert. Even if you have a trading system, applying it to different assets can lead to different outcomes.
4.Reduce Trading Volume as Losses Increase, Balance Emotions, and Stabilize Your Mindset
*When losses exceed 3% of your account (or a predetermined threshold based on your account size), or if you lose 2 trades in a day, it's advised to stop trading temporarily. Use this break to review your losses, identify where you went wrong, and analyze how to improve.
*When you can't maintain a calm mindset and are driven by emotions, seeking revenge on the market is counterproductive. Getting emotional with the market leads to trouble.
5.Take Profits and Know When to Stop
*Taking profits is the most crucial skill for earning a living through trading. Profits should never be ignored.
*Stick to your own trading system when taking profits. Divide your profits into multiple tiers, avoid the regret of missing out. Remember that money is still there, the market remains, and opportunities are abundant.
*Always appreciate yourself for knowing when to take profits.
There are various method to improve psychology in trading: develop a trade plan and stick to it. It will help you to take rational decisions base on your research to fluctuating market. *Stay informed about the news and trends but get hype or FOMO
A good opinion so that we still have a plan when trading and think rationally to set targets. Trading is not my expertise, I only understand a little about technical and fundamental analysis.Not only think rationally but you have to think clearly and use appropriate logic because so far what I have observed in exchanges is all full of logic because cryptocurrency price movements depend on news, some of which are in the international media which discuss digital currencies.
and I always read the news to keep up with FOMO, short-term investments.
A good opinion so that we still have a plan when trading and think rationally to set targets. Trading is not my expertise, I only understand a little about technical and fundamental analysis.Not only think rationally but you have to think clearly and use appropriate logic because so far what I have observed in exchanges is all full of logic because cryptocurrency price movements depend on news, some of which are in the international media which discuss digital currencies.
and I always read the news to keep up with FOMO, short-term investments.
Trading requires knowledge and experience both but knowledge is needed prior to enter the trading market and experience you are getting as a Newbies. There are lots of information available regarding trading so one can easily get it but the accuracy of your knowledge will only be determined by the number of win and loss you face during trading.No doubt, dude. When a city is about to dive into something new, one thing is very important, namely the knowledge it has. Without that, it will be as if the city just entered haphazardly, without any preparation. And the effect,,? will be very complex.
No doubt, dude. When a city is about to dive into something new, one thing is very important, namely the knowledge it has. Without that, it will be as if the city just entered haphazardly, without any preparation. And the effect,,? will be very complex.This is a very good analogy, and hopefully it can be understood well because it is true, as has been said, that everything requires a process to achieve certain goals, such as wanting to become a professional trader, so they will try various trading methods until they have a lot of experience and find one that meets their expectations.
Not only do they lack knowledge and experience, but also because of their ignorance, it can more easily create panic, FOMO, greed, and various other emotional traits which can actually be dangerous.
This will definitely be quite different when we are scientifically prepared, at least we will be more aware and ready for all the risks. So we will understand better what to do.
This is a very good analogy, and hopefully it can be understood well because it is true, as has been said, that everything requires a process to achieve certain goals, such as wanting to become a professional trader, so they will try various trading methods until they have a lot of experience and find one that meets their expectations.Correct. There is no instant success, everything requires a process.
This is a very good analogy, and hopefully it can be understood well because it is true, as has been said, that everything requires a process to achieve certain goals, such as wanting to become a professional trader, so they will try various trading methods until they have a lot of experience and find one that meets their expectations.Correct. There is no instant success, everything requires a process.
When people want to be professional traders, they must deal with obstacles such as losses money or other bad experiences. There is no way to be a professional trader suddenly, it must have a certain process. I agree that people can be professional after they tried various strategies in trading.
1.Cut Losses Immediately When Realizing a MistakeExactly, in this way losses can be handled well, but before deciding to make a cuttloss, you should consider it more deeply so that in the future you don't regret it, for traditional trading and trading in coins such as Bitcoin, Ethereum and others that have high popularity, cuttloss is not needs to be done, but for future trading this feature is very important to avoid liquidation which will make the balance run out instantly.
This is something i could say that it is really that effective. Why? You would really be able to realize that you are really that having mistake.
This would really be causing up for you to have that kind of saving up a huge chunk of your capital on which this is much preferable.
There's no way that we could really be able to avoid such condition yet market prices is always been random and unpredictable.
It you wont really be that mindful about into those wise decisions you would be making then you are really that prone into tons of errors
on which this is something that you should be lessening.
Exactly, in this way losses can be handled well, but before deciding to make a cuttloss, you should consider it more deeply so that in the future you don't regret it, for traditional trading and trading in coins such as Bitcoin, Ethereum and others that have high popularity, cuttloss is not needs to be done, but for future trading this feature is very important to avoid liquidation which will make the balance run out instantly.
Well, I also agree that cutting losses are very necessary, especially for those who trade daily. Be it on the spot market or on the futures market. And in the futures market, a special feature is usually provided to cut losses, namely Stop Loss. Meanwhile in Spot it seems like it has to be done manually. For BTC and ETH on the spot market, I personally prefer not to cut losses if they go down. Because we know both always have their returns.
Exactly, in this way losses can be handled well, but before deciding to make a cuttloss, you should consider it more deeply so that in the future you don't regret it, for traditional trading and trading in coins such as Bitcoin, Ethereum and others that have high popularity, cuttloss is not needs to be done, but for future trading this feature is very important to avoid liquidation which will make the balance run out instantly.
Agree with your opinion if we invest in very popular coins like bitcoin and ethereum we don't need to cut losses. Because it will rise again, all you have to do is hold and wait. of course it requires free money.
Well, I also agree that cutting losses are very necessary, especially for those who trade daily. Be it on the spot market or on the futures market. And in the futures market, a special feature is usually provided to cut losses, namely Stop Loss. Meanwhile in Spot it seems like it has to be done manually. For BTC and ETH on the spot market, I personally prefer not to cut losses if they go down. Because we know both always have their returns.
Table of ContentsThat's right, doing so would mean that we can't incur too many losses
1 Create a Trading Plan.
2 Take Regular Breaks.
3 Don't Quit Your Day Job.
4 Accept That You Will Lose.
5 Practice, Practice, Practice.
6 Use a Take Profit and a Stop Loss.
7 Backtest Your Trading Strategy.
Trading is 90% PSYCHOLOGY and 10% wating.
Table of ContentsThat's right, doing so would mean that we can't incur too many losses
1 Create a Trading Plan.
2 Take Regular Breaks.
3 Don't Quit Your Day Job.
4 Accept That You Will Lose.
5 Practice, Practice, Practice.
6 Use a Take Profit and a Stop Loss.
7 Backtest Your Trading Strategy.
Trading is 90% PSYCHOLOGY and 10% wating.
I agree with you in these your points listed, most especially the number 5, always practice. Even experienced traders too do incure losses in trading, but they are able to minimize it because of their use of good trading facilities and equipments and Also continues practicing...
I agree with you in these your points listed, most especially the number 5, always practice. Even experienced traders too do incure losses in trading, but they are able to minimize it because of their use of good trading facilities and equipments and Also continues practicing...Cryptocurrency price movements are actually very difficult to predict, but when we look at the history of cryptocurrency prices and the news circulating in several media, we will know where coin price movements occur. Even though it is not accurate, at least the results are close enough, which is quite good.
I agree with you in these your points listed, most especially the number 5, always practice. Even experienced traders too do incure losses in trading, but they are able to minimize it because of their use of good trading facilities and equipments and Also continues practicing...Cryptocurrency price movements are actually very difficult to predict, but when we look at the history of cryptocurrency prices and the news circulating in several media, we will know where coin price movements occur. Even though it is not accurate, at least the results are close enough, which is quite good.
I rarely make cut losses on the spot market, because I also invest more in coins that already have very high confidence, so when the price reverses I just have to wait to see an increase.
Well, I also agree that cutting losses are very necessary, especially for those who trade daily. Be it on the spot market or on the futures market. And in the futures market, a special feature is usually provided to cut losses, namely Stop Loss. Meanwhile in Spot it seems like it has to be done manually. For BTC and ETH on the spot market, I personally prefer not to cut losses if they go down. Because we know both always have their returns.
I will cut loss if I choose altcoins that are not in the safe coin category such as Ethereum BNB and Solana. because based on my analysis, the price will dive sharply towards the bottom, I should cut loss.