For traders engaged in financial markets, it is easy to lose money and it is also easy to make profits, but it is difficult to make continuous and stable profits.
Every trader who is looking for the Holy Grail in the financial market is very conscientious at the beginning of entering the market. They are familiar with technical indicators such as K-line, moving average, Bollinger Band, Wave Theory, and Chaos Theory, but they have never been able to achieve stable profits. As a result, they begin to doubt whether they have learned fake technical indicators.
There is a saying in the financial market that "trading is a technology, but more of an art."
Traders who have been in the market for many years must deeply agree that in the financial market, what matters is capital and mentality, neither of which can be missing.
Trading skills can be learned quickly, but the maturity of trading mentality must be tempered over a long period of time, and this process is extremely painful, which is a pain point that most people cannot bear. For example, after a loss, most people can adjust their emotional state in time, reflect on their fear, greed, and hope, and admit their mistakes to the market. However, after continuous losses, how many people can still persist? This is the source of the magical 80/20 rule.
To be a big winner in the speculative markets:
1⃣️You must make more money than you lose and ensure that you are still alive at all times (the principal is safe)
2⃣️The money flow in the financial trading world is from the hands of people with manic hearts to the hands of people with calm hearts. (This is "tuition is also teaching")
3⃣️The pleasure of making money is what gamblers want. Gamblers are willing to lose money again and again just for the pleasure of making money once. (Stay away from leverage)
4⃣️Trading is a probabilistic psychological game. Trading problems should be handled from a probabilistic perspective, rather than focusing on a specific right or wrong. (Don’t operate subjectively, let the objective facts of the data determine)
5⃣️If you want to do your work well, you must first sharpen your tools. Lincoln also said: If I have to spend eight hours chopping down a tree, then I will spend six hours sharpening my axe. In trading, this motto can be understood as: research and learning are very important. The time spent preparing for the exchange is more than the time spent placing orders and watching the market. (Learning is very important and indispensable)
The direct way to make profits in the market is to find a method to use trends (that suits your own judgment) and turning point signals.
6⃣️In fact, everyone is a trader, at least you are a trader of your own funds. The most important thing is not to analyze the market, but to pull the trigger. Even if you have a clear understanding of the market, you must be able to pull the trigger to count. (Execution is the key to winning or losing)
A successful trader definitely does not have a smooth sailing from the beginning. You have to go through so many ups and downs before you can understand the seasoning method of entering and exiting the cryptocurrency circle. Have you ever carefully understood the methods you have learned? Have you carefully adjusted your methods? For the methods you have failed in the past, have you learned those methods like Edison, who knew those methods could not successfully make light bulbs, and then learned from experience and found ways to make light bulbs?
In the cryptocurrency world, you must have a killer mentality. The methods can be very simple, and there are not many effective methods. But the most difficult thing is to train your mentality. Even a gecko knows that it can survive by cutting off its tail. The initial stop loss is often the smallest loss!
For the well-rounded trader, good money management and consistent risk control are more important than a good technical or charting approach. It is very important that the trader controls and overcomes the urge to over-trade or hold too many positions!
My final conclusion is to give up the gambler mentality and "don't let certain profits turn into losses because of greed."
———Share the mentality of being the best and getting rich instantly
