Word around town is that 90% of all traders lose money in the long run. But when it comes to crypto trading, this number is higher…way higher.
At this rate, you’d have a better chance of surviving the Hunger Games than becoming a successful crypto trader!
So what’s causing such high failure rates? Let’s delve into the nitty-gritty stuff that I learned the hard way during my 5-year career as a crypto trader.
We’ve all experienced the downside of emotion-based trading — closing out a trade at the worst possible moment, risking too much or just watching our emotions go through a roller coaster when involved in the markets. These emotions can mess with your head and cause greed, exuberance, fear of missing out etc.
No matter how hard you try or how experienced of a trader you are, trading decisions will always be influenced by your emotions to a certain extent — that’s an inevitable part of being human. However, you don’t have to be controlled or dominated by them.
When you base your trading decisions on sound research and tested trading methods, your trading will get better and the emotions will start to fade away. Aim to become a rule-based trader and you’ll start to trade from a more rational, calm and disciplined state. This will in turn produce better results and encourage you to stick to your rules even more. It will eventually become a virtuous cycle of more discipline, less emotions and better results.
Thinking It’s Easy
Lets say you wanted to become a lawyer and make a 6 figure income every year. You’ll first need four years of study as an undergraduate at a college or university. Then you’ll need to ace LSAT and graduate from an accredited law school in order to be eligible to take the bar exam. All in all, it can take up to 10 years of commitment and gruesome studying.
Now, let’s look at crypto trading. What do you need to become a trader? A computer and a few hundred bucks. Yet for some reason everyone thinks they’ll be making a 6 figure income overnight.
Is it any wonder so many fail?
Let’s be honest here. I’m sure you thought you could chill on the beach, enter a few orders and money will starting pouring in the next day.
Can it be done?
Sure. But it takes hard work to get there.
Lack of Trading Plan
Trading plan is your blueprint for success. It covers everything from entry, exit, risk management, time frame and position sizing.
If you have no trading plan and base your decisions on gut feel, then you’re not trading, but rather gambling. Even worse, you’ll have no idea which area of your trading needs to be improved on and you’ll be aimlessly going around in circles.
When you have a trading plan that you follow religiously, you’ll either make money or lose you money. If you make money, you’ll have an edge in the market. If you lose money, you’ll know what you need to improve going forward. Either way, you win.
Many crypto traders become obsessed with watching the markets 24/7 and overanalysing them. They overthink their every move, and become easily deceived as a result. They perceive the crypto market as a complex entity where you need to learn some magic formula in order to succeed.
By attaching too many indicators onto a trading platform, you can easily become confused and overwhelmed by all the information presented, which will in turn complicate matters even further.
You learn Fibonacci that projects price into the future. You learn indicators that tell you when price is overbought. You learn candlestick patterns that signal reversals in the market. When you have a so much information coming in at once, it can cripple your decision making.
So, what can you do about this?
Start by de-cluterring your charts. To be a successful trader, you need a clear and simple strategy: Here’s what my trading strategy is… Is it present now on the charts? If not, do nothing. If it is, then set up trade parameters and wait.
Nearly all successful traders I have known are one-trick ponies. They do one thing, and they do it very well. — Steve Clark
Crypto trading is like any professional career. It takes a lot of time and commitment to get good at it, and you must be willing to set aside some money for losing and learning from your mistakes. What’s interesting to note is that most of these common mistakes are actually avoidable.
The best thing any aspiring crypto trader can do in his or her career is to learn from a qualified mentor. Trading may seem like something you can learn on your own, but you’re much better off obtaining training from someone who will guide you in the right direction and help you avoid many of the common pitfalls that cause traders to lose money early-on. You want to take as few risks as possible, and losing money because you didn’t get proper education is just foolish.
That’s where Traid.tv steps in.
Traid Platform is revolutionizing crypto trading education by bringing the world’s top traders as your live mentors. Once fully developed and launched, Traid platform will let anyone become part of the elite community of hand-picked professional traders who will take you by the hand and show you exactly how they trade, when they trade and what they trade.
The knowledge you can gain will allow you to cash in on what professional crypto traders have been carefully guarding for years. You will learn exactly how the pros trade, and how you too can easily capture gigantic profits in the market.
Traid Platform will be jam-packed with all the features you ever need to learn technical indicators and chart formations, real-time signals that will dramatically increase your win/loss ratio, make you more confident in your trading, teach you when to enter and exit each trade, and help you see situations most other traders typically miss. You will be able to master the art of crypto trading by seeing what the world’s leading traders are doing.
We’ll wrap this up with a quote by Anthony Robbins that best describes Traid’s business model:
“I’ll tell you now that the best strategy in almost any case is to find a role-model, someone who’s already getting the results you want, and then tap into their knowledge. Learn what they’re doing what their core beliefs are, and how they think. Not only will this make you more effective, it will also save you a huge amount of time because you won’t have to reinvent the wheel.” — Anthony Robbins