Everyone approach the market differently using different indicators, techniques, strategies and trend detectors. I tried comparing crypto trading and our every day business. People in our commercial markets keep their profit realistic. For every commodity displayed the have a fixed price attached to them and even if the give buyers the opportunity to bargain the always have a fixed price the will never sell below. This regular business individuals also experience loss but because of their consistency and realistic profit margin their profit cover-up for their losses.
Comparing this to crypto trading many traders have good strategy. Some see good profit but fail to take them because the expect something bigger. If crypto traders can use the business mindset on their analysis the ratio of their profit to loss percentage will be so large. A business person keeps their greed out of their business because the know if their price get unaffordable they might lose their customers. If crypto traders have a price the expect from every trade we will have more profit than losses.
Crypto trading isn't a get rich scheme. Some days can be very profitable while some days might be terrible. The good days should be appreciated, the bad days welcomed and because everyday isn't profitable having a good profit plan for everyday trade helps save the profit and limit the losses. The first step is having a working strategy and after that is knowing the limit of your strategy. No matter how good a traders strategy appears there is always a limit it can't exceed. Not because those strategies aren't reliable but because the market varies and no single model trained can make accurate prediction in all market situation. Each of them have their strength and limitations
Yes that's right!
In the normal business of selling a product, the product has a value. This is the purchase price (if the item was purchased from the seller). Or the cost of production (if the product is a product of own production). In business as usual, sellers of a product tend to sell it at a price above cost. This is necessary to make a profit. There are cases of cartel collusion when organizations start selling goods at a price below cost in order to ruin competitors and capture a large part of the market.
However, this is illegal. Regulators stop such attempts to manipulate the market.
In trading there is no concept of the value of a commodity. There is only the concept of the price of buying and selling an asset. An asset has no physical form and very often has a lot of price volatility.
Under these conditions, it is sometimes advisable for a trader to fix losses, rather than constantly trying to make a profit on a particular transaction.
