How to Crypto-Trade with Profit 101: Why most people FAIL
A big bullrun with Bitcoin equals new money coming in faster. New money means new dumb money. Dumb money has no idea how to trade and will fail, hard. I'm here so you get to be smart money.
Most common pattern of dumb money? Chasing highs. Panic sell at bottom. They do that because:
1. Next to No Knowledge how a Market Works
They come in, see the green candles all over the place and start trading. I did that and failed spectacularly. They will do that too and fail in grand fashion. No effort put into researching basic market theory <=> no idea what they're doing <==> idiots. You wouldn't jump out of a plane without knowing you have a parachute. Newbies do and hope to miss the ground. If they get lucky, the land on top of a rocketship, but we're not here to be lucky, we're here to make money consistently.
2. No Roadmap
Noobs enter the game and have no idea what their goal is. So they ride and ride and ride until the coin drops (in Crypto, these coins can crash in 1hr, which is a tiny ass time frame to work with). They have no plan.
How to make a good plan?
Get your technical analysis skills up. Watch some YouTube videos on the most basics technical analysis stuff, you won't need more. Apply your new learnings to the charts, write down your entry points and target points, place stop-loss orders and adjust accordingly. You can't just enter a trade without a solid exit-strategy. You wouldn't jump out of a plane over a big fucking ocean, even with a parachute.
3. No Discipline
Fear Of Missing Out (FOMO) and Fear, Uncertainty, Doubt (FUD) are your biggest enemies in this game. Newbs will regularly go through these emotions, they buy high and sell low.
Don't let your emotions do the trading for you. Just because you feel like jumping out of the plane right now, doesn't mean it's a good decision. Remember your written roadmap? Stick to it, you've written it while you were rational.
This doesn't mean you don't adjust to different market circumstances.
Always keep in mind these three things, they are the reason most people fail in Crypto. You can't win when you don't know how to fail and failure is part of life. So get used to it, but be smart about it.
The faster you go, the shorter you are.
- Albert Einstein