I have spent my early days of trading working hard to eliminate emotion and move on when trades lose. Get in place an almost robotic strategy that pays more on winners and cuts lowers quickly. E.g. aiming for 3% on each trad but cutting losses at 2% means that I only need 40% of trades to "win" in order to at minimum break even. 50:50 = profit.
For trading.....I personally use the orderbook on very high volume coins to try and tell where the next swing is going to be (up or down). I learned it here: Voodoo Crypto Discord for those interested.
Let me know what you all do and your successes.
Topic: 4 factors that could destroy your Trading - page 2. (Read 1235 times)
See market prices of crypto currency increasingly fluctuate I think there are a lot of traders who suffered losses, and In taking a decision, many traders are still affected by emotions. Fourth factor that's the meaning, of is a type of emotions:
- Greed
Almost all traders familiar with the types of emotions, the desire to obtain profit possible in a very short time. Greedy nature incurred due to excessive self-confidence. Usually happens after the trader earn profit in a row. They are not aware or forgot that important fact in trading is not can expect definite results of each trade.
- Fear
A sense of fear entered the market usually occur after consecutive losses experienced trader. Fear is basically a natural response so that we can survive in the market. However, excessive fear will make traders lost the opportunity to gain profit. During trader comply with rules risk management and trading plan has been made, he should not be afraid to enter the market.
- Hope
Excessive hopes or unrealistic in trading could harm. Hope to always profit often cause traders to not follow trading plan that has been agreed upon.
- Regret
Regrets that constantly will destroy trading gradually. Regret usually arise after a trader lost some chances to buy or sell, or after experiencing considerable losses. If it is not quickly resolved, the kind of emotion this would be developed into fear, and in extreme cases could make him leave the world of trading.
To prevent these types of emotions , we should always be aware of whether we're in emotions when trading, because trading with the emotions will only make our trading destroy.
- Greed
Almost all traders familiar with the types of emotions, the desire to obtain profit possible in a very short time. Greedy nature incurred due to excessive self-confidence. Usually happens after the trader earn profit in a row. They are not aware or forgot that important fact in trading is not can expect definite results of each trade.
- Fear
A sense of fear entered the market usually occur after consecutive losses experienced trader. Fear is basically a natural response so that we can survive in the market. However, excessive fear will make traders lost the opportunity to gain profit. During trader comply with rules risk management and trading plan has been made, he should not be afraid to enter the market.
- Hope
Excessive hopes or unrealistic in trading could harm. Hope to always profit often cause traders to not follow trading plan that has been agreed upon.
- Regret
Regrets that constantly will destroy trading gradually. Regret usually arise after a trader lost some chances to buy or sell, or after experiencing considerable losses. If it is not quickly resolved, the kind of emotion this would be developed into fear, and in extreme cases could make him leave the world of trading.
To prevent these types of emotions , we should always be aware of whether we're in emotions when trading, because trading with the emotions will only make our trading destroy.
This makes a lot of sense...essentially you could say that every emotion is in the way of successful trading, whether negative or positive. It gets more difficult to stay neutral the higher the amount you have on the table. So place smaller bets, it makes it way easier.
Yes, you are right, these factors are often encountered in some new traders, which eventually makes this new trader destroyed and has a huge loss.
Who would not be afraid when the price of a coin or altcoin fell as a result of panic in the event of a huge drop in stock and it is better to choose another coin to start a new profit.
Yes, these negative emotions are disastrous for traders. Many of us have passed through them. Only some have drawn conclusions and are no longer captives of these emotions, and some are completely absorbed in these emotions and can't get rid of their influence. All these emotions are natural for a person, only successful people differ in that they are able to take even such emotions under control.
I wish everyone to become successful!
In fact there are many things and factors that influence the results in trading and negative emotions play an important role in the outcome. when you are too emotional in trading you certainly will not be able to do calculations carefully because you are not thinking clearly. yeah you're right a great trader is those who can control their emotions I wish everyone to become successful!
I think this is indeed what can influence the new traders, including me, I can better understand why I am very difficult to get profit.
yeah, I think that's right. the greed will make the profit you get lost, it will even turn into a loss. while others are supporters of great losses. calm attitude, and grateful will be a good attitude in trading.
I think the four factors that you mentioned are true, but you still lack a few more factors and this factor is very important to be able to get success, the factor that I mean is patience, patience is very important.
I think the worst thing is that traders are unable to calculate their own risks.
The trader should know himself, his strengths and weaknesses and, based on this, he will choose the strategy of earning. For example, if you are calm and know how to wait - invest in ICO, if you are adventurous and quick - think about arbitration. Each strategy is individual. You can even use several if they suit you
yes you are right These 4 factors can make many people experience losses when trading because they cannot control their greed and cannot control their patience.
All these are basically emotions. So in general, trading will somehow be crippled down by emotions. Cryptocurrency trading is not for the emotionals. Emotions do not have a space in this arena. This is a place for reason and rational strategies and decisions. We have to supplant any emotional outbursts. Otherwise, the ending will always be regrets.
I agree that these factors significantly affect the results of the trader and you need to learn how to control them, then everything will be easier. It is always desirable to fix the profit of 30-50%!
the 4 factor will always be on our side, and we cannot deny or rejected. but as long as we can control our emotion in trading, I think we can prevent to get a loss, and we can make a good strategy in our trading time. we don't have to become greed when we can see the price increase higher, and we only take the profit before the price is back to go down again. fear will always stay with us, and we cannot make a buy order if we are still afraid of the fluctuating of the price. hope will come to us even in the worst situations because we still want to make a profit from the crypto market, so we still believe that the crypto market will increase again. regret will be part of our trading time, and if we can use the mistake as our lesson, then I think we can move on, and we can prevent the same error in the future.
yes I agree, in trading we must remain calm and not need to be too emotional, we must be able to think clearly to analyze the market and make decisions correctly and take the opportunities to get profit
Tslke about factors that could destroy ones trading. We don't have to look for many factors to draw our conclusion from. Greed alone can destroy ones trading plans. The urge to make more profit while you are already on profit is dangerous. Let try and avoid it
Yeah you are right and me and my friend are almost emotional when they get a loss on the market, because waiting for the recovered asset price to take a short time and I will try your advice to trade again.
I think the 4 factors that you mentioned are very true and nowadays there are so many people who are very greedy and they are too hopeful and cannot control the patience they have.
Indeed, the 4 factors presented here are important but of course does not comprise all of the dangerous trading factors. Personally, one that's hard to battle with is the human emotion of 'greed'.
Yeah I admit that greedy is a very influential thing for the losses that you might get and that might give a big loss. like me right now. I'm too greedy to hold my bitcoins from the beginning of the year because I expect higher prices. and you know the results
holding a coin isnt a greedy move but selling too early is . though it'll also depend on the situation . let say you sell your coins too early because you need the money for some important spendings , then that is not a greedy move because you are only prioritizing your own life rather than cryptos .
being greedy is not a good trait and should be erase from our selves as it will only cause us for more problems in the future if ever we insist to do illegal act because of greed .
Indeed, the 4 factors presented here are important but of course does not comprise all of the dangerous trading factors. Personally, one that's hard to battle with is the human emotion of 'greed'.
Yeah I admit that greedy is a very influential thing for the losses that you might get and that might give a big loss. like me right now. I'm too greedy to hold my bitcoins from the beginning of the year because I expect higher prices. and you know the results
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