Tired of Losing Money? Learn to Trade with Patience and Strategy
If you really want to become a real investor, not just a risk-taker, this article deserves your full attention. Those who open 10x-20x leveraged positions with all their capital are, frankly, gambling more than trading. The high risk of liquidation is due to the extreme volatility of the cryptocurrency market, where 10%-20% fluctuations are completely normal. Even if a stop loss order is implemented, such moves can wipe out a large portion of your initial investment.
When trading, the most important factor is patience. If you are someone who has a hard time being patient, I think you are unlikely to be a successful investor. Let's take a look at why patience plays an important role in trading.
First of all, it is very important to avoid jumping into 10x or even 1x leveraged positions with all your capital. Trading with such a high stake is no different than trying to predict the market's movement by flipping a coin. Instead, your first trade should represent only 5% of your total capital.
If your trade starts to turn a profit, great! You can take profit and continue whenever you want. However, if the market reverses your position, don't panic. Patience is your best ally here, as only 5% of your capital is at risk. If the market moves 10% against you, that's when you should consider strategically increasing your position.
This approach allows you to position yourself more favorably when the market eventually corrects and reverses back towards your entry point (barring exceptional circumstances). Once your trade becomes profitable, wait until you have a stronger position and then close it with the desired profit. Success in trading often depends on timely patience and a disciplined strategy.