After your first Bitcoin bull run, you should be smart enough and know this.
It is pretty simple, But you only learn this after you lose your first cycle.
Most new people havenât lost yet, so they will make these mistakes. Be smart and learn.
Here are the things you should know for long-term success as a trader: (Number 5 is the most important)
1. Crypto is not Gambling: People who don't trade or understand trading often compare trading to gambling.
On a neurochemical level, gambling and day trading are not much different. However, experienced traders know that trading isn't gambling, But instead a 'game' of strategy, analysis, statistics, probability, and risk management.
2. Trading is a Business:
Trading is a business and incurs expenses, losses, taxes, uncertainty, stress, and risk. As a trader, you are a business owner, and you strategise to maximise your business's potential.
3. Only Trading Provides Freedom: Trading is the only business that doesn't require you to interact with or rely on other people. In trading, you are the only person responsible for your outcome.
4. Don't Get Caught Up in the Noise: When you begin to hear everybody on social media talking about a certain crypto coin you're already too late. Ignore the noise. Only trade the charts as everything else is a distraction.
5. Risk Only What You Can Afford to Lose: The money in your trading account should be expendable. The money in your trading account should not be allocated for, Uni fees, bills, mortgage, or anything that will influence your quality of life.
Losing money is traumatic enough. Even more so if it should have never been risked in the first place. Look this is what you need to realise. This should haunt you every night. You started Crypto 4 years ago and time really does fly! You are still broke and nearly are going to miss this cycle.
I've seen people stupider than you getting extremely rich, Just because they paid attention and took action. Take action and follow me now before it's too late.
This is what a lot of people preach. They think itâs safe for some reason. Itâs exactly the same, it is just a slower way to lose money.
A slow liquidation is not better than a quick liquidation.
Many traders think theyâre profitable with a small sample size of wins and only to lose large amounts later. So the solution?
Trade the 1 minute.
You will experience a wide variety of events and emotions that would take you years on higher time frames.
Example; The fear when you lose 7 trades in a row, the poor execution that comes with bad sleep, the greed when you enter a win streak for the first time Go through multiple cycles of journaling and strategy development. And you donât need to lose a lot of money to learn.
Just trade with $100.
(If you donât have $100 to lose you shouldnât be trading anyway) If you canât develop a profitable system on lower time frames, you can't on the higher.
The higher time frames wonât make it easier, just make it take longer.