Its been said,
“If Trading would be easy, Everyone would be riding Lambos”
but in reality there are more number of traders riding the bus than lambos. You invest Capital and then lose it for many reasons and quote that trading is excruciatingly hard. Trading comes from Strategy, Experience and Intuition. An excellent strategy can only be formulated when its backed with facts and facts comes from experiences which not just you acquire but numerous other traders with years of trading experience.
Why Beginner Traders lose capital:
If you are losing a lot, you might not know how trading strategies work and you are not using strategies. This is one of the problems and we at CryptX Financial see it a lot. The question arises:
Why to look at strategies when it looks easy to win a ton of money in short Span of time?
The Answer is “People” and “Strategies are Cool!”.
Strategies can help you eliminate emotions from trading and they provide you with the confidence that if you follow your plan will profit you in a long run. When you understand that trading you do is a long run game, you tend to feel less disappointed when you make a slight mistake. We are humans and we always make mistakes and we have the ability to learn from them. It’s a part of Pro Trading and all strategies take into account losses, not only profits.
People are afraid of the Red Colour and the “-” sign.
Many Beginners are afraid to see their trade on red, be assured about it, it’s okay to have a red in the chart. If you are working with a tested method, created and validated in years by a professional trader, you should not have stress. You will know when to take your profit and you will know when to get out when the stop is reached and wait for a better trading opportunity. You will understand why staying in bad trade is bad and why HODL in hope it will go back up is a very naive strategy. You would not hope for anything in Trading, You should just have a strategy.
If you have time and you are motivated enough – you make them yourself slowly, and test them. If you have the opportunity, take them from professionals, from books or courses and learn to apply them correctly. When you become experimented enough, you will be able to modify them to fit your style better.
– Using Strategy you are able to eliminate the FUD and FOMO from your Traders, and you are able to trade with confidence by following the rules of your strategy.
– You can have red in your trading Charts for a while, its okay, just be consistent enough with your strategy, It will work out really well.
– Trusting a strategy reduces the constant dilemma of the future and makes you see the charts less which can make it an obsession
– You have your entry and exit levels defined, and you just follow them accordingly. That gives you your life back, or more time to use as you please.