Hello to all novices who always lose money and to my dear followers who seek to learn how to trade wisely to stop giving away their money.
Today we will learn about take profit and stop loss. But before we begin, let’s have a clear example of what happens to most novices 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 is the world and all the whales really against you?
Well no, it is impossible for everything to be against you, leave the paranoia that no one wants to steal your money.
So what is happening here?
Simple, you are suffering from what I call "Novice Syndrome" every novice suffers from it and it is the biggest 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 heal from the novice syndrome?
First, we must learn exactly why this happens and what exactly the novice syndrome is.
The novice syndrome is when someone without knowledge randomly chooses a coin and hopes that it will go up or down.
"This coin will undoubtedly go up or down"
That is what they think, and so they choose to open a trade, but in just a matter of minutes, you are already down -5% of your capital.
You feel nervous, but you still have hope, the coin is still against you and now you have -20%
Your nerves worsen and you are a novice, then do what every novice does. Seek help from an expert in square.
So make a post, hold or close.
Many comment, "That coin is garbage because you opened a trade on it" "Hold that coin will undoubtedly go up or down"
"Enter 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 undoubtedly 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’t hold on any longer, you lost hope a long time ago, now you just want to recover your money, you no longer care about profit. "Close or hold" your mind is a disaster, 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, shout manipulation, curse the system, but that doesn’t help recover your lost money.
That is the novice syndrome that condemns and steals your money.
How to counteract the novice 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 where it is difficult to rise and break. In this case, Tia has a resistance level at $5, it has been more than two months without being able to reach it.
2) Support level: The support level is the opposite of the resistance level, a very difficult price for the coin to drop. In this case, Tia has a support level at $3 although it was broken during the February drop causing losses in my trades. It is something inevitable, sometimes failing, but I overcame 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 right point to trade is. I am currently waiting for the support level to drop to $3 and verify if it breaks down to the next level of 2.5. If so, then I will place a long trade at 2.2 for a rise 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 doesn’t break the support level of 1.5, it will undoubtedly rise, meaning as long as it doesn't reach my stop loss, my profits are secured. It will be a trade of weeks, not hours as many novices decide to trade, which brings them losses. This will allow me to make profits thanks to knowing how to trade with support and resistance levels, or rather 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 are able to predict the different support and resistance levels in the coin.
Well, thank you for reading up to this point. For a day when novices 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 everyone.