Many beginners come to crypto with dreams of quick, easy gains. But reality paints a different picture. Statistics reveal a low success rate among retail traders, especially for those who dive into complex trades without preparation. A professional trader once said, āIf you need money that badly, the market is not going to give it to you.ā Our curse is ATM mentality, when we press the buttons and it does not print money we blame the machine, the bank and the government š, but market is no ATM and here we can only blame ourselves for our mistakes. This truth is harsh but important to understand.
Professional traders often refer to retail tradersāus beginnersāas ādummiesā and even worse. Why? Because weāre quick to use high leverage on futures, treating contracts for difference (CFDs) as shortcuts to wealth. Meanwhile, theyāre busy building positions on spot, with a disciplined approach that emphasizes accumulating valuable assets over time.
If youāre a beginner with big financial goals, here are some essential tips to set yourself up for long-term success:
1. Prioritize Investment Over Trading: Begin by building a portfolio rather than jumping straight into active trading. Focus on gradual growth and value accumulation.
2. Start on Spot Markets First: If trading is what you truly want, test your strategies on spot trades. Only when youāre consistently profitable on spot should you consider futures trading.
3. My Opinion on Trading Approaches: In my view, day trading and swing trading are some of the hardest strategies for beginners to succeed in. Position trading can be more forgiving, though it typically requires a higher capital base and greater tolerance for volatility. Unfortunately, many retail traders with small initial capital find themselves limited to short-term trading options, which come with high risk.
4. Bring Sufficient Capital: Unfortunately, the right starting position often requires more than $50-100. A small capital pool restricts your options and tempts you into risky all-in trades. Professionals can grow even small amounts, but for us, without their expertise, that capital limitation often leads to failure.
5. Learn from True Professionals: Seek out content from real professional traders, especially those with experience on trading floors. Their disciplined approach and mindset offer a valuable contrast to the fast-money mentality often seen on social media. Learning from them can help you build a more grounded and effective trading foundation.
6. Master the Mechanics: Take the time to learn and incorporate the tools your exchange provides. Familiarize yourself with every button, order type, and featureāunderstand them thoroughly. Experiment with small amounts to make each action second nature, so that when it matters, your response is confident and instinctive. This foundation is essential for navigating markets effectively.
Itās worth noting that exchanges, influencers, and tutorials often promote short-term trading as if itās the golden ticket. Exchanges incentivize it with mechanisms like funding fees, and social media often glorifies rapid trading profits. But the truth is, trading is a skill. For professionals, itās a job theyāve mastered. For beginners, itās a steep learning curve. Donāt get me wrong, there is a chance someone can pick that one coin go all in and quickly become rich. It is just this strategy is not sustainable, I would not call it a strategy. It is a gambling, it can be thrilling and fun and in most cases it will wipe the account š±.
Conclusion: Build wisely, start simply, and think long-term. The market can be a source of growth, but it doesnāt reward those who chase after money without the right mindset and preparation.
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