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What it's really like for a full time trader.Profit pays bills If there is no profit, you're screwed! trading full time isn't for everyone. There is a lot of uncertainty, there is a lot of discipline required and it is a long road of fails before taking it seriously. I've shared some of my personal story here, this is to help highlight the real challenges of what its like relying on the market to pay your bills. Something I didn't mention is that you need a partner who believes in you and will stick with you through all of the hard times
BINANCE:BTCUSD.PShort
0
by Blayno_MTOPS
17
OvertradingOvertrading is a common issue in trading and can lead to significant losses. It occurs when a trader excessively opens and manages positions, often due to psychological and emotional factors. To avoid overtrading, consider the following strategies: Establish a Solid Trading Plan: Having a well-defined trading plan is crucial. Your plan should outline entry and exit strategies, risk management rules, and criteria for position sizing. Stick to this plan and avoid deviating from it due to emotional impulses. Risk Management: Limit the amount of capital you risk on each trade. A common guideline is not to risk more than 1-2% of your total trading capital on a single trade. This approach helps protect your capital from significant losses. Diversify Your Portfolio: Avoid putting all your capital into a single trade or asset. Diversifying your investments across different assets can help spread risk and reduce the temptation to overtrade a single asset. Set Trading Hours: Define specific trading hours or sessions during which you'll be actively trading. Outside of these hours, avoid opening new positions or making impulsive decisions. This approach can help maintain discipline. Emotional Control: Recognize the emotional triggers that lead to overtrading, such as desperation, overconfidence, or impatience. When you feel these emotions, take a step back from trading, focus on your trading plan, and practice mindfulness techniques to manage emotions. Monitor Your Trading Frequency: Keep track of the number of trades you execute in a day or week. If you notice you're trading excessively, it's a warning sign of overtrading. Review your trading activities and identify what drove you to make those trades. Limit the Number of Open Positions: Setting a maximum number of concurrent open positions can prevent overtrading. This restriction forces you to be selective and prioritize quality over quantity. Use Stop-Loss and Take-Profit Orders: Implementing stop-loss and take-profit orders can automate your exit strategy. This reduces the temptation to constantly monitor and adjust trades, which can lead to overtrading. Trade Size: Be mindful of your position size relative to your account balance. Avoid increasing position sizes disproportionately after a series of wins. Stick to a consistent position sizing strategy that aligns with your risk tolerance. Take Regular Breaks: Trading for extended periods can lead to fatigue and emotional decision-making. Schedule breaks to clear your mind and refocus your trading strategy. Remember, trading is a long-term endeavor, and success is not determined by individual trades but by your overall performance. Avoid the allure of quick profits and stay disciplined in following your trading plan to mitigate the risks associated with overtrading. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
Market narrativesWhen analyzing the crypto market, we often use the concept of a "market narrative." However, it's essential to understand that these narratives are not solely shaped by price movements and chart manipulations but are also influenced by external factors. In the world of cryptocurrencies, this market is significantly different from traditional financial markets. It is particularly susceptible to a wide range of influences from various sources, including news, social media, online communities, and the development trajectories of Tier-1 projects. Event-Driven Influence: The crypto market's relatively low liquidity makes it prone to sudden changes in prices triggered by various events. These events encompass exchange hacks, regulatory alterations, technical updates, and other news that significantly influence market narratives and participant activity. Social Media Impact: Popular social media platforms play a pivotal role in shaping market narratives. These platforms enable the formation of communities where opinions are shared, rumors spread, and public sentiment is influenced. Notably, the initiation of verbal battles and provocations within comment sections can manipulate public opinion. These conversations often seek to confirm existing beliefs and reinforce the primary narrative, sometimes even at a subconscious level. Media and Blogs: Thematic news websites and blogs, along with influencers, can wield considerable influence over market narratives through articles, reviews, research publications, interviews, and commentary. It's worth noting that some individuals and companies conduct paid PR campaigns for projects, and these campaigns may sometimes involve deceitful practices. Institutional Participation: Actions taken by significant players, such as institutional investors, cryptocurrency companies, funds, and media figures, can escalate interest in the information sphere. For instance, news of a major investor or fund purchasing tokens from a specific project can lead to increased interest, heightened volatility, and price fluctuations. Narratives surrounding developments like ETF adoption or Bakkt can serve as hype builders, even though underlying issues within the industry may still loom large. Guidelines for Interacting with Market Narratives: Research and Verification: Avoid accepting information at face value. Conduct thorough research and cross-verify news from multiple sources before making any decisions. Risk Assessment: Acknowledge the extreme volatility in the crypto market and objectively calculate risk-reward ratios. The size of positions should be determined based on an assessment of fundamental indicators and project metrics. Never risk more than you can afford to lose. Develop Your Investment Strategy: Define an investment strategy that aligns with your goals, timeframes, and risk tolerance. Understanding the fundamental aspects of blockchain projects and technology is vital, as it goes beyond market narratives and can be the key to informed investment decisions. Connect with Like-Minded Individuals: Given the vastness of the industry, it's challenging to track every change and update by yourself. Engage with a community of peers to quickly access necessary information and learn from the experiences of others, which can directly impact your investment strategy. Embrace Long-Term Goals: Instead of trying to predict short-term price changes or immediate hype-driven surges, adopt a long-term perspective of the crypto market. Long-term plans and strategies are less susceptible to volatility and associated risks. Understanding a project's fundamentals and metrics can provide insights into its long-term potential, which often provides more valuable information than short-term market fluctuations after a listing on a cryptocurrency exchange. In summary, to navigate the crypto market effectively, it's vital to be cautious, well-informed, and maintain a long-term perspective, all while actively participating in the crypto community to stay updated and share experiences. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
20 trading rules1. A bad trade or a string of bad trades doesn't mean anything. 2. Don't focus on the last deal: it has nothing to do with the next one. 3. Always follow the trading plan: in good and bad times. 4. Focus on one trading pair. 5. In this business, losses are inevitable: in order to succeed in trading, you need to learn to accept risks. Reducing risks will help eliminate anxiety and a source of stress. 6. You need to understand what kind of trader you are: which trading discipline is best for you. If you are slow to react to price movements, then short-term or swing trading may be better for you. If you are able to quickly respond to price movements, intraday trading is probably suitable for you. 7. Trading without a plan and without using a protective stop loss order, excessive use of a deposit - all this can bury you as a trader. 8. Never make anything absolute in trading - we work with probabilities. Every transaction must be considered in terms of probabilities. Nobody knows where the price will go. Give up perfection in trading. You can't be right all the time. If we have a sound trading model and the ability to manage risk, the outcome of a trade should not weigh so heavily on our psyche. 9. You need to leave your ego out of the market. 10. Lower time frames narrow the picture and create a misleading picture of the current state of the market, so you should focus on long-term charts even if you are a day trader. 11. Expectations should be down to earth: there is no need to set inflated goals, this can lead to rash decisions and unsuccessful transactions. If you cannot achieve an inflated goal within a week , then this may cause a deviation from the plan and force events. 12. Success in trading requires consistency, not large trading positions. Even with a small starting capital, you can achieve amazing results if you: follow the rules of risk management , act according to a trading plan, reinvest income (compound interest method). 13. Do not complicate the work process using different approaches and strategies. The simple system makes trading less stressful and more profitable. Any strategy will have losing trades, but when those losses are within acceptable expectations for your system, the law of averages will guide you through the drawdown periods and you will make money. 14. If the system does not show results in the long term, then it is worth looking for the reason. You need to find your weaknesses and bad habits. 15. Trading should not take up all your free time. Presence is only required at specific times, which are coordinated with the economic calendar . Relax and mind your own business. Avoid addiction to trading. 16. Excessive trading does not lead to anything good. Limit yourself only to those models that are specified in your trading strategy . Understand that the market will provide new opportunities and setups. Relax and remember to have realistic expectations. 17. You should not be in front of charts during periods when you are not feeling the best or are in a bad mood. This may result in a desire to take out your anger on the market. This approach is fatal for a trader. Take a break and rest. 18. It is necessary to keep a trading journal and record in it not only transactions, but also your experiences at the time of entering and exiting a transaction. Another reason to keep a trading journal is to try to stay organized and disciplined. Following a trading plan is much more difficult than it seems. 19. A professional trader should open a trading terminal like a 6th grade mechanic approaches the machine - calmly, without emotions, clearly knowing what he will be doing for the next few hours, when all actions are brought to automaticity. 20. Every professional speculator hides three psychotypes of personality: analyst, trader and gambler. A trader will be successful by ignoring the gambler and listening to the analyst. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
Motivation in tradingMotivation is essentially the driving force behind our ability to meet our desires and needs. The crucial psychological mechanism safeguarding us from threats. It's a natural response, and while it's important, dwelling on potential threats excessively can diminish our enthusiasm for life. However, fear serves a valuable purpose as it compels us to focus on specific situations. This psychological reaction goes by various names such as excitement, anxiety, worry, or tension, depending on the individual's circumstances when facing a perceived danger. These emotions manifest both emotionally and physically, but it's essential not to prolong or intensify them beyond necessity. Every emotional state has its limits, and one's ability to control them is crucial. In the realm of trading, fear is an omnipresent force affecting every trader. However, how traders deal with this fear varies widely. One significant fear revolves around initiating a trade. The thoughts and emotions surrounding trade initiation can be potent enough to create doubts about one's trading setup. This doubt often arises due to factors on the trading chart, fear of losing money, or simply the dread of making an error. Persistent self-doubt rarely leads to positive outcomes. Managing this fear is achievable through a well-defined trading strategy, one that encompasses risk management, trade timing, key factors, timeframes, triggers, tools, and adhering to established rules. Having clear boundaries and acceptable losses is crucial. When a 1% loss of your deposit doesn't burden you emotionally, you can objectively analyze your actions and plan your next steps. Another common fear, especially among beginners, is the fear of trading with real money. It's essential to recognize that learning to swim on land is impossible. This fear essentially pertains to the fear of incurring losses. While trading on a demo account offers a valuable learning experience and a platform to refine your trading style, it cannot fully prepare you for real trading. Overcoming the fear of trading with real money is essential for progress. To succeed, you need a clear timeline for your progress and the ability to monitor and analyze your actions. Striking the right balance between self-confidence and emotional burnout is essential. Self-confidence and a positive assessment of your progress will help keep you motivated on your journey. To make it easier to achieve your goals, we advise you to write them down in as much detail as possible. Starting from daily, small tasks, and ending with monthly or annual results. Everything should be as detailed as possible. The easiest way to start is with a plan that spells out what days and times you want to trade. What percentage goal should be achieved by the end of the week? This is just what concerns trade. It is equally important to get results psychologically. This applies to discipline, resistance to stress, as well as learning new material. Additionally, finding sources of inspiration can accelerate your progress. The trading community, with its collective wisdom and support, can be a significant source of motivation. Witnessing other traders' achievements, receiving guidance, and knowing you're not alone in your journey can provide invaluable inspiration. Other sources of motivation may include sports, music, travel, and familial support. It's essential to eliminate toxic sources that could demotivate you. In conclusion, achieving your trading goals requires diligent effort, including experimentation, decision-making, and continuous evaluation of your progress. It involves taking calculated risks and the courage to let go of what no longer serves your objectives. This journey may entail sacrifices, but the potential rewards make it worthwhile. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
Probably the Biggest Trading Advice CollectionHey traders! We hope you find these trading advices helpful! If you appreciate our ideas, give us a quick 💜💜 Top 50 Trading Advices 1. Risk Management is Key: Always define your risk before entering a trade. Use stop-loss orders to limit potential losses and protect your capital. 2. Stay Informed: Keep up with financial news and events that can impact your assets. Use economic calendars and news alerts to stay ahead of the curve. 3. Keep Emotions in Check: Emotions can cloud judgment. Stick to your trading plan and avoid impulsive decisions, especially during volatile markets. 4. Use Technical Analysis: Learn to read charts and use technical indicators. They can provide valuable insights into market trends and potential entry/exit points. 5. Diversify Your Portfolio: Don't put all your eggs in one basket. Diversification can help spread risk and improve long-term performance. 6. Paper Trading: Practice with a demo account before risking real capital. It's a great way to test strategies without financial consequences. 7. Continuous Learning: The markets evolve, and so should you. Stay updated with trading books, courses, and webinars to refine your skills. 8. Keep a Trading Journal: Record every trade, including your thoughts and emotions. It's a valuable tool for learning from your successes and mistakes. 9. Trade During Peak Hours: Liquidity tends to be higher during peak trading hours, which can lead to tighter spreads and better execution. 10. Stay Disciplined: Discipline is the cornerstone of successful trading. Stick to your trading plan, even when things get tough. 11. Monitor Market Sentiment: Pay attention to market sentiment indicators, like the COT (Commitments of Traders) report, to gauge how traders are positioned. 12. Use Limit Orders: Instead of market orders, consider using limit orders. They allow you to specify the price at which you want to enter or exit a trade. 13. Avoid Overtrading: Set a daily or weekly trading limit to prevent overtrading. It's easy to get caught up, so discipline is crucial. 14. Backtest Your Strategies: Before deploying a new trading strategy, backtest it using historical data to see how it would have performed in the past. 15. Stay Patient: Wait for the right opportunities. Not every price movement is a trading opportunity, and sometimes it's best to sit on the sidelines. 16. Understand Correlations: Be aware of how different assets are correlated. Understanding these relationships can help in risk management. 17. Keep an Eye on Fees: High trading fees can eat into your profits. Look for brokers with competitive fee structures to maximize your returns. 18. Network with Other Traders: Join trading communities or forums to share experiences and learn from fellow traders. Collaboration can be enlightening. 19. Adapt to Changing Volatility: Adjust your trading strategy based on market volatility. Some strategies work better in volatile markets, while others shine in calmer conditions. 20. Mental and Physical Well-Being: Take care of your mental and physical health. Trading is demanding, and a clear mind and body can make better decisions. 21. Stay Adaptable: Markets change, and so should your strategies. Be willing to adapt and evolve with changing conditions. 22. Understand Leverage: If you use leverage, make sure you understand how it amplifies both profits and losses. Use it cautiously. 23. Keep an Eye on Economic Indicators: Economic indicators like GDP, employment reports, and inflation can provide insights into broader market trends. 24. Avoid Revenge Trading: Don't try to make up for losses by immediately entering more trades. Stick to your strategy and avoid impulsive actions. 25. Set Realistic Goals: Have clear, achievable trading goals. Knowing what you want to accomplish can help you stay focused and motivated. 26. Trade What You Know: Stick to assets and markets you understand. Trying to trade unfamiliar assets can lead to unnecessary risks. 27. Stay Informed About Regulations: Be aware of the regulatory environment in your trading jurisdiction. Compliance is crucial to avoid legal issues. 28. Avoid Weekend Gaps: Markets can experience significant gaps over the weekend. Consider closing positions on Fridays if you're concerned about weekend gaps. 29. Avoid Trading on Tips: Don't base your trades solely on tips or rumors. Conduct your research and analysis before making decisions. 30. Practice Patience: Trading success takes time. Don't expect instant riches. Be patient, persistent, and committed to your craft. 31. Maintain a Trading Routine: Establish a daily routine that includes market analysis, review of open positions, and research. Consistency can lead to better decision-making. 32. Keep a Clear Workspace: Organize your trading environment. A clutter-free workspace can help you stay focused and reduce distractions. 33. Avoid Overconfidence: Overconfidence can lead to risky behavior. Always approach trading with humility and a healthy dose of skepticism. 34. Scale Positions: Consider scaling into and out of trades gradually. This approach can help manage risk and optimize profit potential. 35. Use Trading Journals: Maintain a detailed trading journal to record your trades, including entry and exit points, reasons for the trade, and emotions. It's a valuable learning tool. 36. Risk-Reward Ratio: Ensure your potential reward justifies the risk. Aim for a favorable risk-reward ratio in your trades. 37. Stay Calm During Drawdowns: Drawdowns are a part of trading. Stay calm and avoid making impulsive decisions during losing streaks. 38. Learn from Mistakes: Don't dwell on losses; instead, learn from them. Each mistake is an opportunity for growth and improvement. 39. Stay Grounded: Avoid letting wins inflate your ego. Stay grounded and maintain discipline, regardless of your trading success. 40. Consider Seasonal Trends: Certain assets exhibit seasonal patterns. Research and consider these trends when making trading decisions. 41. Utilize Fundamental Analysis: Combine technical analysis with fundamental analysis for a comprehensive view of the markets. 42. Stay Informed About Global Events: International events can have a significant impact on markets. Stay informed about global news and geopolitical developments. 43. Stay Informed About Global Events: International events can have a significant impact on markets. Stay informed about global news and geopolitical developments. 44. Avoid Chasing Trends: Be cautious of entering trades late in a trend. Wait for pullbacks or retracements for better entry points. 45. Trade with a Clear Mind: Avoid trading when you're stressed, tired, or distracted. A clear and focused mind leads to better decisions. 46. Learn about Position Sizing: Determine the appropriate size for each trade based on your account size and risk tolerance. 47. Utilize Mobile Trading: Mobile trading apps can provide flexibility, allowing you to manage your trades on the go. 48. Stay Humble in Victory: While celebrating wins is natural, stay humble and recognize that markets can be unpredictable. 49. Consider Tax Implications: Be aware of the tax implications of your trading activities and plan accordingly. 50. Avoid Overnight Risk: Consider closing positions before major news events or overnight gaps to minimize risk. 51. Continuous Education: Commit to lifelong learning in trading. The more you know, the better-equipped you'll be to navigate the markets successfully. Remember that trading involves risk, and there are no guarantees of profit. These advices are meant to help you become a more informed and disciplined trader, but always approach the markets with caution and a well-thought-out plan. Happy trading! 📊💼
Education
by Vestinda
1