Topic: Trade with a business mindset - page 5. (Read 838 times)

I like the word realistic profits from the OP. The thing is everyone wants to start trading today and want to 5x or 100x their investments by the end of the day. This is just ridiculously expensive thought anyone could have even in their dreams. I literally laugh when I see advertisements where some random guy is posing in the film and how seriously he keeps telling his story that he is earning 20-50k every month from trading and he just started couple of months ago and he is using XYZ app that’s why he got success. Bullshit man, I literally laugh on such things. Not only this, now there are instagramers who are experts in the field. But nothing is realistic in them. Trading is big bull game. You have to give lot of time and effort for it.

I see trading as a business, so anyone who does not have that mindset is wasting is time because both are looking forward for profit. In my own view trading is not a physical business, that why I advise any trader to no rely on trading, have a physical business because of unforseen circumstances.

I'm not sure how to integrate a Business mindset into trading. Maybe it was because both are aiming to earn profit but what makes them different is that in business every opportunity should not be missed and we have to be more aggressive like a greedy person but in trading, we don't have to do it (greed) as this will make you fail.

Likely, if you are into trading, then make your mindset as a trader. But if you are in business, make up your mind that you are in business as well.

Yes, it is a learning process we can get by practicing it directly to give us experience.
The more we learn about trading, of course, it will increase our ability to analyze and our efforts to get bigger profits.
It's okay if we experience losses; as long as we consider it a process that we must go through, it can also make us cautious in our decisions.
By continuing to learn, we can find which ones are suitable for us to do and in analyzing, we can also get clues about when to enter the market.

I’m trading for many years in crypto but until now I’m not comfortable on my trading strategy even though I’m having a good steady income on stocks trading here in my country. The fundamental analysis on crypto makes crypto trading very wild since you didn’t know when this kind of volatility will hit and on what direction. Even if you have a good TA while a big news can easily deny your TA.

I’m thinking on business mindset but still crypto trading is not meant for a source of steady income for me unlike stocks trading that really work for me since I can saw the the physical business company of each stock that I’m investing.

You succinctly captured the whole thing in the quoted text. That aspect is the great undoing of many speculative traders, not just crypto alone. There's no trader who would say truthfully that they hadn't been caught in that web. We need a bit of greed once in a while in this market, especially when one thinks the coasts are clear. The market doesn't show us mercy when dealing us in loss and I believe that's why traders expand their expectations while in small profit. However, what I will advise in a situation like this is for such a trader who wants to risk it further to adjust their SL to entry level. It's a bad trading habit to watch a trade already in profit go back into loss. With entry level, you don't loss anything again.

Money management in trade is very important here. Despite our skill/indicators, knowledge and emotional control, if we can't have a working money management then all we know amounts to nothing because we are going to be losing just as we are gaining and at a time our loses will take us out entirely. So using appropriate leverage, risk appetite to our capital and stop lose are ways we can be a better and less greedy trader.

Firstly every trader needs the know that trading is a very serious business and if any trader wants to be successful at it then they have to be ready to put in work and dedication. Without doing those then you might most likely not be profitable and results in you quiting. If trading is your professional business then you must learn to input those attributes that helps a business becomes profitable when your are trading, firstly you have to have a clear focus, been able to differentiate your emotion from your business (which is trading) should be a priority before anything else.

Strategizing should come next, as to become a professional traders has to do with you having a strategy that works profitably for you. You can't be guessing and expect the outcome to be productive. Even if it works in the earlier stage of your journey, as you progress the results will change. Any trader that doesn't go with a business mindset and thinks trading is all about been lucky through gambling will end up losing all their capitals.

That's why learning to control your emotions is the top priority list in trading, even in everything you do in your life. Emotion is very tricky, you can be easily manipulated by your own emotions if you don't know how to control it. There's a monk saying that "mind is power" therefore it should be separated on your body, but not literally, lol.

This means that your mind is the master of all the things you'll do, but you must have the power to command it, not the other way around. For example, a bad trade after hours or days of making a good technical analysis could result to a huge frustration and disappointment, your mind will probably tell you to quit or enter a trade without any plan, that's danger right there.

So if you know how to control it, the right thing you'll do is to rest, plan again, and trade again.

Eh? Actually trading is a get rich scheme since you're trying make profit everyday by beating the market. Investment is the strategy that not get rich scheme since they don't mind if their investment not making any return for short time as they're looking for long term prospect.

Even though there's a day where market is bear and the price continue to dump, that's what cut loss for.

Trading is indeed very complex and to be successful we need many things,
knowledge and skills are two things we must have before trading,
We need to avoid greed because it can make us lose so trade wisely

Trading is a very unpredictable business tbh and you should accept what amount you can get in every trade as long as you can make profits afterwards and not losing money in it. Be practical and always build a good strategy so that you can gradually get your price target. Being greedy will not work so be smart enough..

In trading, it is good to take away greed and not good to look for what you can not lose, I mean if you can lose $5 daily, then you can think of a way to make $5 daily from trading with your trading capital, in a way that if losses occur, it won't be more than $5. Before losing the $5, there should be a better high range between the entry price and the mark price before the money would be lost.

It is good to have good money risk strategies and also making indicators and other fundamental analyses to back it up.

But we should still considering that trading is risky and far riskier than what you compare it to which are people that buy and sell goods.

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