To become a successful trader rather than a gambler, it’s crucial to approach your trades with care and patience. If you’re leveraging 5x-10x positions with all your capital, you’re essentially gambling. Such high-risk positions have a high likelihood of liquidation, especially in the volatile crypto market where 10%-20% price swings are common.

Even with a stop-loss in place, you could still lose a significant portion of your principal due to these market movements. Therefore, patience is the key to trading effectively.

If you tend to act impulsively, trading might not be for you. Here’s why patience matters:

1. Avoid opening high leverage positions (10x or even 1x) with your entire principal. A 1x position is little more than a coin toss regarding market direction.

2. Begin by investing only 5% of your principal in any position. If it turns a profit, you can take it and move on.

3. If the position moves against you, since it only affects 5% of your principal, you should wait patiently. If the market reverses by the first 10%, consider adding to your position to improve your stance.

4. Markets generally revert to the mean, so your entry price might be revisited. Monitor your position, and once it shows a profit, close it.