Topic: The right mindset needed for all traders - page 8. (Read 3201 times)

So if you trade by emotions you will very likely loose money on the longterm. Therefore you should try to stick to your strategy and use as much technical tools for chart analysis to avoid trades lead by emotions

It is indeed a good read but bumping an old topic without having something valuable to add is not worth it, in my opinion. I mean you can bookmark it for yourself if you feel the content is important and you want to have a look at it more often. Never mind though because the OP is actually a good read for someone who is new to trading.

If you are talking about BTC bull run, then I would say even investing/buying now is not a bad idea because the price is going to bloom even further and as we approach the next year we can see some crazy records reached in terms of price. If you are talking about altcoin market's bull-run then I don't see any bull run in fact most of the coins have gone down (in ratio with BTC) like Tron has lost it's ratio with Bitcoins although has done well to stay relevant with USD market.

I want to set this back for us, to enable us to take note and remain astute. As we approach another bull run in the market with enormous prices you must maintain your trading psychology

Be patient, avoid greed and remember that it is never advisable to buy bitcoin at the top, do your own research and make the most of the bull run

Shouldn't this thread be on trading discussion?

Anyway, I think the most important aspect that a trader must have is planning and discipline. A trader must have some kind of strategy, he must know his entry and exit when trading and to execute this, he should have the discipline to stick to his plan, so he won't get caught in FOMO.

~snip

Staying at home has helped me to study and learn and today, i will be referencing the key virtues that is learnable to be a trader

Trading psychology refers to mental or emotional state that defines or dictates if a trader win or lose.

Why do traders lose?
Neutrally, most traders are attached to their funds and capital which affects their emotions and force traders to trade not to lose money.

I advise that we all Have a winning mentality while trading, Because in the market today; there are tendencies to lose few dollars or money on every trade, but we can overcome by having a solid reason to enter a trade (DYOR).

5 fundamentals to help traders in the market:

1. Discipline: Coming into trading with a mindset not to gamble. You can use TA (Technical Analysis), because it teaches discipline to use it. Fundamental analysis meanwhile is about understanding market emotions correctly and trading with it.

Discipline helps you to see exactly what the market doing.


2. Patience: To be a patient trader; it means that you understand what the market is saying and the emotions attached, what the market could likely do and being calm and composed enough to follow what you see.

Why do traders/holders buy or sell too early ??


It happens because they do not know what is happening in the market, being patient while trading helps you to read properly and perfectly your analysis to a definite stage and also helps you to understand whatever the market is showing you without unnecessary emotional attachment.

To be patient, you need understanding, and to understand; you need to build a strong the fundamentals of what you are understanding.


3. Planning: Planning goes down to your analysis, your position sizing and also your trading psychology. For planning to help, you need to understand your analysis; and also understand that you must not trade more than you can afford to lose, once you go overboard; its gambling.

Planning helps you to accept the probability of how much you can lose and equally what you stand to gain from the trade.

Planning helps you to accept what will be earned or lost from the trade.


4. Persistence: Persistence helps you understand that the goal is to make more profits than loss.

5. Flexibility: This is quite difficult because as a newbie trader, you might not understand perfectly what the market can do; and there are some market moves that comes as a shock. Recent example is bitcoin losing 4000$ in a stretch few weeks back.


Discipline keeps your focused
Patient allows you to learn
Planning keeps you level headed
Persistence keeps you in the trade.
Flexibility allows you to combine all of this to trade.


And finally

Trading psychology is more of understanding people’s emotions and yourself

I am open to learn even further, and i welcome everyone suggestions

firstly, all traders should know that they can't be gaining always there will be sometimes there will be a loss. But in order to reduce the rate of losing there are somethings that trader must know which:
- Always positive mind when trading
- Patience: being patience when trading can go along way
- keeping learning: As we all know that experience is the best teacher and knowledge is inevitable

To some extents you are right; but you are not necessarily required to stick to a strategy, but you need to improve your strategy and trading techniques from time to time; so that you can get upgraded, and more informed even in the crypto currency space. Also, irrespective of the level of experience, always do your own research,

So if you trade by emotions you will very likely loose money on the longterm. Therefore you should try to stick to your strategy and use as much technical tools for chart analysis to avoid trades lead by emotions

Traders who are extremely emotional do not apply TA at all before buying a coin. If for example you analyze properly, you should know where to set your stop limit (stop loss) and sell order. What I normally do is, after buying a coin, I set sell order and SL using OCO incase the market goes south.

Discipline keeps your focused
Patient allows you to learn
Planning keeps you level headed
Persistence keeps you in the trade.
Flexibility allows you to combine all of this to trade.


And finally

Trading psychology is more of understanding people’s emotions and yourself

I am open to learn even further, and i welcome everyone suggestions

So if you trade by emotions you will very likely loose money on the longterm. Therefore you should try to stick to your strategy and use as much technical tools for chart analysis to avoid trades lead by emotions

Discipline keeps your focused
Patient allows you to learn
Planning keeps you level headed
Persistence keeps you in the trade.
Flexibility allows you to combine all of this to trade.


 

Yes, it's not easy even for experienced traders. It's not only about trading or doing businesses, controlling our emotions is a hard thing to do in our lives as well. That's the hardest thing when you have to control your angry, greedy, sad, etc to avoid the effects of those to your ability of making decisions.