Why do most traders lose their deposits? It’s simple: emotions always win over charts. And what wins over emotions? 🤔
Imagine: after three successful trades in a row, it seems that the market belongs only to you. 💰 You enter the fourth trade, confident that you will be right again, but the chart suddenly goes the other way. 📉
“This is a temporary pullback!” — you think, adding to your position. But the candles keep falling. Losses are increasing. 😱 Panic intensifies. If you are leveraged, the situation becomes even more critical. 💥
And then you hear that ominous sound… liquidation. The chart moves on as if nothing happened, and you sit there, struck by just one thought: “How could I be such an idiot?” 😤
How to avoid such scenarios?
Why do emotions take over?
• Euphoria from profits
After a series of wins, it seems that the market is our personal ATM. But the market thinks otherwise. The result? Liquidation. 🎢
• Fear of losses
You see a loss on the screen and tell yourself: “This is definitely a reversal!”. But the reversal does not happen. The result? Liquidation. 🛑
• High leverage = huge risk
The higher the leverage, the faster the losses. Your deposit burns up like a dry match in a fire. The result? Liquidation. ⚖️
• Reluctance to admit a mistake
“I did everything right! The market is wrong.” Sound familiar? The result? Of course, liquidation. 🎯
How to conquer emotions?
1️⃣ Set stop-losses and take-profits
Do not just set them, but do it before the trade! Decide in advance:
• Maximum loss (no more than 2% of the deposit).
• Profit target (for example, 1:2 to risk).
And don’t touch them, even if the chart whispers in your ear: “Come on, move the stop!” 🚦
2️⃣ Limit leverage
Remember: leverage is like a fast motorcycle. With the right approach, it can speed you up, but without control, it will only add problems. If you are a beginner, do not exceed 2x. 📉
3️⃣ Create a clear plan
Entry, exit, risks — everything should be outlined in advance. No improvisations. The plan is your lifebuoy in a stormy market. 📝
4️⃣ Manage your time
Do not constantly look at the chart. It only fuels emotions. Use apps like TradingView to set alerts and calmly engage in other activities. ⏰
The crypto market is a chess game, not a roulette.
Emotions will always be your companion, but only you decide who is the captain in this game.
Make your choice: turn calmness into a reflex, discipline into a habit, and the plan into your main weapon. May your journey in the crypto market be successful. 💪