I've never posted here before, but seeing so much bad advice being shared, I felt compelled to step in. Here’s my take:
### Mindset Over Mechanics
Trading is 90% psychology and only 10% skill and analysis. Developing a trader’s mindset is crucial. For those serious about understanding the psychology of trading, I highly recommend *Trading in the Zone* by Mark Douglas.
### Own Your Decisions
Don’t blame the market or external factors. Take responsibility for your actions regardless of the outcome. If you lose money, it’s on you, not the market. Remember, the market doesn't tell you to buy or sell; the decision is entirely yours. Blaming whales or market manipulators is a cop-out.
### Master Risk Management
Proper risk management is key. Limit your risk to 1%-3% of your total capital, based on your risk tolerance. While this may not yield massive profits quickly, it ensures sustainability. Making money in trading is a marathon, not a sprint. Instant profits are a myth; chasing them is akin to gambling. And we all know what happens to gamblers in the long run.
### Use Stop-Loss Orders
I still see many traders operating without stop-losses and then complaining when they get liquidated. Using stop-loss orders is non-negotiable.
### Position Sizing
Learn to calculate the right position size—how much crypto to buy—based on your risk parameters. Proper risk and position sizing are far more important than leverage. As long as your liquidation price is outside your stop-loss, leverage is secondary.
### Final Thoughts
The essentials are clear: focus on proper risk management and position sizing to navigate the market effectively.