Hello traders. In the current video, we will talk about how to save a deposit, stop draining money in cryptocurrency trading, and how ordinary traders thinking. Indeed, many of us in the first months of trading lost money – partially or completely, we again saved up for a deposit and once again took up trading. Let’s take a look at the main nuances and mistakes of losing money in crypto trading.
How to stop flushing in trading
Most novice traders lose money for the following reasons. The first reason is impatience. Each of us wants a quick result, but it never happens in life that he came to the market and made $ 1 million out of $ 100. Nobody throws money in the market. Remember that when you enter the digital money market, you are trading with other players and your interests are against them. Therefore, learn to wait and build up your deposit gradually.
The second reason is increased risks and lack of money (risk) management. Often, a newbie overestimates the risk and invests all the money he has in each trade. For example, if you have 1000 USD, then you will use all the funds in several or one deal. Of course, you can’t do that. You must use in all transactions or one single transaction no more than 0.5-1% of the entire deposit. In our case, from 1000 USD, 1% is 10 dollars, for this amount you can open a deal and get a profit.
How to recover a deposit
The third reason is the absence of Take Profit, Stop Loss, or Safety Orders (CO). Many traders just buy an asset, I don’t think about when they are going to sell it and at what price. As a result, they become investors and wait a very long time for the price to return to their entry point, and the price may never return. Be sure to place Take Profit, Stop Loss, or CO – the ability to average the deal and make the entry point smaller using free funds.
The fourth reason is the lack of a trading strategy and plan. A trader should draw up a trading strategy and a plan for which he is going to trade. This strategy should include the crypto pairs for which it trades, the timeframe, elements of technical and graphical analysis, whether the news is taken into account or not. As well as helpful tools like 3commas and Atas. And much more that is included in the trading strategy – I will tell you about this in detail in a separate video.
How hamsters think in trading
The fifth reason is the ability to control yourself. If you received a Stop Loss today, you should not try to recoup and return the loss. Take a break and take a break from trading for a while. This also applies to successful trades, as a series of wins inspires and forces you to take risks. The sixth reason is the ability to recover the deposit. That is, take money out of a trade when you have closed trades and sometimes add free funds to the deposit to build it up.
The seventh reason is self-confidence and emotional control. If you lose, it’s good, if you win, that’s not bad either. Did you close the deal earlier and the price left without you? Forget it! The market will not run away from you and will always give you a new chance. It is better to close the trade earlier than waiting for the price to reverse and lead you to a loss. The eighth reason is greed and fear. It follows from the previous point, it is important for a trader to track greed and fear in order to think adequately.
A video about how to save a deposit, stop wasting money in digital money trading, and how beginners think is coming to the end. The topic of psychology and trading is vast and I will make some more interesting videos and articles on this topic in the future. That’s all until new videos on botcryptotrade.com