Hello crypto traders. In the current video, I want to talk about the psychology of cryptocurrency trading. This is a very important aspect, as you may have a good trading strategy and risk management, but if you are not in control of your emotions, it’s in vain. Why? We will talk about this further. Let’s start!
What character traits are useful in trading?
Restraint, dedication, flair, composure, diligence, and patience are what are required to be successful in cryptocurrency trading! And the most important character trait is awareness! It is important to be able to be aware of every moment of what is happening to you and control your emotions and actions, so that, for example, you do not buy a token with all the USDT money and not take too much risk.
After all, if you constantly take risks and trade aggressively, violating the principles of your trading strategy, then sooner or later, you will lose a significant part of your deposit. Why do so many traders make the same mistakes? Because they often succumb to two of the most dangerous emotions in trading. This is greed (the desire to earn as much as possible) and the fear of losing even a small part of the money.
How to beat greed in crypto trading
Therefore, a trader should pay special attention to greed and fear. How to defeat greed and fear? First, realize that all the money in the world cannot be earned, that it’s all. Second, understand that it is impossible to always catch the maximum sell peak or the minimum buy bottom. Because you simply do not know when the market is going to peak or bottom and when it will reverse.
Third, take profit using Take Profit or Stop Loss at breakeven. Fourthly – fix the loss using Stop Loss. Fifth – after fixing profit or loss, watch yourself so as not to fall into euphoria or depression, go to rest, and do not trade for at least 1 day. Sixth – we are in no hurry and calmly increase the deposit.
How to beat fear in crypto trading
Seventh – if you are an investor and intend to hold the token for a long time, then the steps are as follows. Just buy a cryptocurrency, set yourself a goal to sell it at a certain price, set a notification when the coin reaches a given price and that’s it! Now just wait and don’t do anything! Eighth, check the schedule at most once a day. You can often watch charts only if you are a scalper or day trader.
Ninth – withdraw profit to a bank account and make purchases for yourself, whether it be a new car, motorcycle, computer, tablet, or a regular trip. You must feel real money! Tenth – leave part of the money for life, and do not invest everything in trading or investing. Eleventh – have another job or income in order to calmly wait out the investment or drawdown to the deposit.
The video about psychology in crypto trading is finished. Hope you find it helpful. Apply these 11 rules in your life and constantly be aware of what is happening to you at the moment in order to control your emotions and become a successful trader. That’s all and until the next video releases on botcryptotrade.com