Market really moves not always in a up, if there is a bull run, there is a bear market too and vice versa
But in a long time frame, the market is always up only. What? Why?
Yes, increase in partivipation
Not everyone are into crypto or markets and economy always keep rising in a longer term plan.
And guess what,
There is never a recession or downtrend only
Its only shakeouts for all every damn time.
So, in long term if market is always up only means
Why do we panic sell?
Thinking market will never rise again?
Market is soooo over?
Never
How can we minimise these panic selling mistakes?
1) Booking profits on time
No one can catch the exact top and bottom. Thus considering market as supreme, we should always timely book profits always in parts.
2) Dollar Cost Averaging
DCA or Dollar Cost Averaging strategy is a very popular strategy which we can apply on downtrend when we are bulls to bring down our average entries at rock support levels where price is highly likely to mean revert.
3) Knowledge
Market is supreme and no matter how much you study and how much you keep gaining knowledge, no one in world can manage 100% accuracy in market and its all a prediction game. So gaining knowledge is waste? Chances increases high level when we keep getting ourselves updated but if you are not ready to homework, your success ratio is 0. So, always be commited and keep updating yourselves for markets and keep learning how much possible.
4) Patience
People here want quick profits and not ready to wait and play. We should always wait patiently and plan accordingly then execute.
5) Plan before exection
Everytime, plan and have a proper backup before any trade setup to be executed. Getting and jumping into markets straight away, will lead you to heavy losses right away.
6) Paper trading
Instead of playing with real funds, always atleast execute trades in only a demo account for 6 months until risk : reward and accuracy is good.
7) Market phscology
Be greedy when everyone is bearish and be fearful when everyone is greedy. Market just goes always opposite to what everyone thinks
8) Herd mentatlity
Avoid taking trades which is a wide spoken and everyone is talking about. That trade is likely a bait and not likely to hit, market always goes opposite.
9) Confirmation bias
We always follow some or the other and we always overlook their bias for the direction and self doubt when it goes opposite. Understand the good fact that, no one is supreme only market is. Be stick to your bias, have risk managed, you will either earn or you will learn, nothing in between.
10) Consistency
You can enter the market today, take a break for months, then trade all of sudden for few days and take break again. It will bring losses. Everything here needs experience, in any type of job, that only comes through experience. Be dedicated to this feild, show up every day, whether its pofit or loss, journalise everything, be consistent, you will be the biggest trader one day
