Hello to all the beginners who always lose money and to my dear followers who seek to learn how to trade intelligently to stop giving away their money.
Today we will learn about take profit and stop loss. But before we start, let’s have a clear example of what usually happens to most beginners in futures while they lose their money.
Many of you have undoubtedly gone through the experience of the market always moving against you. If you choose long, it drops, and if you choose short, it rises, so common that most blame manipulation and the world that is against you.
But are the world and all the whales really against you?
Well, no, it is impossible for everything to be against you; leave the paranoia that nobody wants to steal your money.
So what is happening here?
Simple, you are suffering from what I call the "Beginner's Syndrome"; every beginner suffers from it and it is the main cause of your losses.
In conclusion, your mind is your greatest enemy, not the whales, the system, or manipulation.
That exists, but it is not here to specifically steal from you.
How to counteract and finally cure yourself of the beginner's syndrome?
First, we must learn exactly why this happens and what exactly the beginner's syndrome is.
The beginner's syndrome is when someone without knowledge randomly chooses a coin and hopes that it will rise or fall.
"This coin will undoubtedly rise or fall"
That's what they think, and that's how they choose to open a trade, but in just a matter of minutes, you are already down -5% of your capital.
You get nervous, but you still have hope; the coin continues to go against you and now you have -20%.
Your nerves worsen and you are a beginner, so you do what every beginner does. Seek help from an expert in square.
So make a post, hold or close.
Many comment, "That coin is trash because you opened a trade on it" "Hold, that coin will undoubtedly rise or fall."
"Go to my profile for 100% accurate signals and recover losses" "Why enter the market if you know nothing? You will lose your money; better study."
Many comments without a doubt, but none that are helpful or calm your nerves; on the contrary, now you are much more nervous, and while you were wasting your time, the trade is now at -45% of your capital.
You can no longer hold on; you have lost hope for a long time, now you just want to recover your money, you no longer care about the profit. "Close or hold" your mind is a mess, and now your capital is at -60%.
Close the trade to at least save 40%, and boom, the market corrects and in a matter of hours, the coin rises to +50% of your capital.
You regret it, scream manipulation, curse the system, but that doesn't help recover your lost money.
That is the beginner's syndrome that condemns and robs your money.
How to counteract the beginner's syndrome? And what does that have to do with take profit and stop loss?
To counteract the syndrome is easy; you just have to learn two terms, the example of the coin will be $TIA .
1) Resistance level: The resistance level refers to a specific price of a coin at which it is difficult to rise and break. In this case, Tia has a resistance level at $5, it has been over two months without being able to reach it.
2) Support level: The support level is the opposite of the resistance level, a price at which it is very difficult for the coin to drop. In this case, Tia has a support level at $3, although it was broken during the drop in February causing losses in my trades. It is something inevitable; sometimes you fail, but I overcame it and increased, allowing me to recover my losses.
Can you already see what this is about?
Knowing both levels allows you to learn where the exact point is to trade. I am currently waiting for the support level to drop to $3 and verify if it breaks to its next level of $2.5; if so, I will place a long trade at $2.2 for an increase to $3 take profit and a stop loss at $1.5. If it breaks $2.2, it means it will continue to fall, maybe to $1.7. Therefore, my trade will undoubtedly go negative, but if it does not break the support level at $1.5, it will surely rise, meaning as long as it does not reach my stop loss, my profits are secured. It will be a trade of weeks, not hours as many beginners decide to trade, which brings them losses. This will allow me to obtain profits thanks to knowing how to trade with support and resistance levels, or better said, with stop loss and take profit. Because both work together.
If you read my previous article, "Written Simulation," this is something you should apply to it. Look for support and resistance levels in $BTC and start applying it until you can predict the different support and resistance levels in the coin.
Well, thanks for reading up to this point. For a day when beginners stop giving away their money.
As a final piece of advice, you can also apply this to the coin $ETH which has much clearer support levels than BTC.
Remember to follow me for more advice, happy days to all.