Trading digital currency is an adventurous journey that makes sense to anyone and can affect jobs, businesses and all industries. Real traders are people who set their heart on it and succeed in it.
Trading digital currency, They use a variety of tools and strategies to do this, and each follows its own rules and principles to achieve this goal. Of course, there are similarities and differences between the methods and habits of successful traders.
orld-renowned traders and gives them ten very important recommendations in the form of a Article Has collected which you will read below.
1. Learn before you risk your money
Walter Lesicar, Bert Bossenberry and Madaz are three successful traders. All three believe that learning and training is the most important step to becoming a successful trader.
Their simple but important advice is to open a demo account; Such accounts give the trader some unrealistic stock to trade and help him to be well aware of the complexities of a market. The owner of the legendary Futures Trader 71 channel on YouTube, in an interview with BookMap, describes the learning process as a multi-step process that requires human understanding.
He says about this:
In the first stage, your learning is mechanical and you have no idea about the final skills you want. In the second step, you will find that you know nothing about it. At this stage, you will gather information and do a lot of exercises and examples. In the third stage, you finally understand what needs to be done and you train your brain to consciously do it continuously.
۲. Trading is a job; Treat it like a job
The host of the YouTube channel “Del the Trader” claims that the way you deal with this should be like a growing business. Luis Recabarren acknowledges that hard work and focus are the principles of success in trading. A trader’s focus usually starts with focusing on an overall market analysis and eventually turns into monitoring and trading several specific stocks or assets.
The owner of Futures Trader 71 also points out that the business needs to be treated like a business in terms of investment and commitment. Managing and allocating the right time will give you the most opportunity to make a profit.
“Bitscalp, an anonymous trader from Malta,” says Marco.
Many people can not succeed in this. It takes years to come to terms with the red market situation and the loss of money in doing so. Most people prefer to eat snacks and watch TV to achieve financial independence.
3. Have a plan and a plan and stay true to it
Brett Busnbury believes that without a comprehensive plan and strategy, the profits and losses of your trades will be equal at best. Of course, it is not only Bassenbury who has such an opinion. Jason Ramus explained why two strategies should always be used:
A strategy for daily trading and a strategy for minimizing risk in times of crisis.
Leading traders recommend that you develop your own trading habits:
- Wake up at a set time each day and get ready for work.
- Draw and write exit and entry levels for yourself.
- Always pay special attention to Stop Loss.
- Start small and work from the bottom of the list eliminating issues that are not worth the fight.
- Look for patterns. “The most important thing in a trader is stability,” says Joseph Gasperoni.
- Identify your mistakes.
- Remember that the use of large scales (Oversizing) is only justified if you have a precise and solid strategy.
Schedule a trade and schedule a trade.
Bitscalp is a completely different trader in this respect. He advocates the ongoing development of loss management initiatives. According to him, your trading history is not necessarily related to your success as a trader, and success in this job depends more on your learning power and adaptability during this process.
In terms of trading time, most traders prefer early morning. Carlos Martinez believes that the deal will bring the best profit at this time. Of course, other traders prefer to start later, when market trends can be more easily identified.
4. The main issue is risk management
Set aside losers and imitate winners. You have probably heard this sentence many times. It is not unreasonable that most successful traders repeatedly apply this principle in trading and newcomers forget the opposite.
Frank Pollack reminds us that taking risks in trading and not being afraid of losses can improve the success and profitability of your trades. Stop loss should always be considered in your planning. In the deal, you must put aside desire, prayer and hope, otherwise you have not yet learned your lesson well.
Jason of Oil Trading Group (OTG) also confirms that traders should repeat their successful trades as much as possible [and avoid losses as much as they can]. He says that the relationship between risk and reward is also true in this work and more risk will bring more reward.
Koning Karel goes a step further and argues that losses are necessary to change and improve a trader’s strategy. The trait that the market teaches you over time is humility, and this trait is very important for your estimates and not repeating past mistakes.
Walter Lesicar considers fractures and injuries to be an integral part of the learning process. In fact, it is possible to achieve higher profits when you have learned to minimize your losses.
When starting a process, my first task is to create and finalize the loss limit. Whether the market moves in my favor or to my detriment, I never wait to reach the level I have set because I feel comfortable setting them.
Brett Busnbury also warns against ignoring risk management. He knew the worst deal of his life was when he made $ 4,500, but after taking a shower and returning, he realized that his stock had fallen to $ 4,000. Instead of avoiding further losses and withdrawals, he maintained his position even when it was worth $ 8,000. The next morning, while checking his balance sheet, he found that he had lost $ 27,000.
I will never repeat this mistake. Always stay true to your strategy and plan.
5. Fundamental analysis is very important
Fundamental analysisEspecially in terms of investment, value is very important. However, many experts believe that fundamental analysis does not replace technical analysis.
The director of the Dean Market Profile believes that combining these two methods can greatly improve your trading revenue. This Indian trader uses fundamental analysis to examine the overall picture of the market and make decisions about the factors behind its volume and price movements. He uses his own trading framework called LTC, in which the letter L stands for Logic, the letter C stands for Context, and the letter T stands for Timing. Ultimately, this fundamental value is an asset that increases its price in the long run.
Due to the cyclical nature of stock markets, periods of recession are the best time to buy financial assets. The most important principle in this method is consistency of procedure, and of course, success in it can lead to arrogance and ostentation.
The manager of the YouTube channel Madaz Money says that buying and selling opportunities depend on certain factors and that positive and negative news have a great impact on the market. The main indicators of these events are volume, volatility, as well as support and resistance points. For some traders, market depth is a key element in their strategy and they spend 90% of their energy and focus on it. Madaz Mani argues that technical indicators only work when a large number of people use them.
Martinez recalls traders known as “Trapped Traders.” These traders usually buy at a high price and sell at a low price. A method that is detrimental to them but ends up in favor of the other parties to the transaction. A combination of stop losses and planning to achieve the desired profit is the main pillar of most trading strategies.
“Future Trader 71” channel manager says:
You need to understand the mechanisms of the market in order to be able to use them to your advantage.
He is also about Transcription from another person’s transactionsHe warns that this will not be of any benefit to you in the long run. Other traders pointed out that new traders pay attention only to the technical aspect. While monitoring the indicators for decision making, they expect someone else to warn them when to enter and exit trades.
With so much market information available, tools like Trading View help traders identify and focus on the most important information available. Frank Pollack considers significant changes in volume as one of the factors of growth and says:
These changes show me when to stay in the process and when to get out of it.
Bitscalp, however, enjoys predictable patterns in the digital currency market:
Now that Wall Street and commercial banks have entered the game, we can see the market making patterns that are commonly seen in the Forex market. According to this model, excessive liquidity causes rapid and sharp price movements, followed by numerous short-term trading opportunities.
6. Use only a few tools and indicators to trade
Countless free and paid software is available to traders these days, but thousands of different sources of information such as Stockwits, QaurterlyReports, groups and private chat rooms should be added to the list. Your informed choice of these softwares and resources is extremely important. Choose the tool that works best for you and stay true to it.
Keep in mind that using a large number of indicators can disable you. Following a wide range of indicators is a daunting task. Excessive data also creates a confusing clutter of information that, while seemingly relevant at first glance, does not really exist. Below is a short list of indicators that our traders have suggested to you:
- (Volume Weighted Average Price (VWAP
- Elliott Waves
- Fibonacci levels
- Relative Oscillation Index (RVI)
- Order Flow Checking Tools (Order Flow)
The main techniques used in trading are Order Flow and CVI. Flow order or flow of orders is a method in the transaction in which the trader guesses the price trend by examining the purchase and sale orders in the exchange offices. Accumulation index also helps you to find the places where the big purchase takes place.
Popular software used in trading also includes Rithmic, E-Trade and Black Box software, although their list is not limited to these three softwares. It is beneficial for all traders to share their trading experiences with others and help them improve their risk optimization skills. Remember, these are the people who control the market, and computers only execute commands.
7. Leverage transaction
Using leverage will help increase your profits. With leverage, you can borrow many times your capital from an exchange and increase your profits by investing more. For example, if you use leverage 5, you can invest up to 5 times your initial capital. Of course, do not forget that if your loss is too much, the money changer may take all your capital instead of your loss.
The FT71 user says that it is very important to have enough capital to enter the transaction, you must use the lever to achieve your desired results. Bitcoin does not enter the Bitcoin transaction in any way without using leverage.
Of course, keep in mind that this is a high risk. Matt Davio recalls how he and his colleague Jeff bought a 2001 stake in Krispy Kreme, the owner of a donut chain store, from the time it was a completely risk-free asset until it became a A risky asset, they pursued and decided to go for itShort positionCreate. In the short position, when the price of an asset falls, you make a profit, and if the price of an asset goes above a certain level, you lose all your assets.
We opened shorts for a stock. There came a time when the price was a little too high to jeopardize our investment portfolio, and this continued for six weeks. One day we received a call from one of the exchange managers:
Hi guys, do you understand what the situation is like when you open it?
It is not usually bad news to receive such a call, but not if you are holding the position in shorts. Both traders were very upset by this situation; Because their decision to open their position had an impact on 15 other positions. They eventually agreed to close some positions and calculate losses, leaving them with $ 3 million in the end. Two weeks later, Crispy Cream shares fell sharply. They would have made a profit of $ 18 million if they had closed the position just two weeks later.
Davio says the incident was a valuable lesson for them.
8. The odds of winning are always important
Yagub Rahinmov of 7MarketZ insists that attention to statistics and probability is essential to achieving the best possible results. Lescar also says in this regard:
To win, you need a chance of at least 51 to 49. Understanding how Order Flow works and reviewing buy and sell orders has increased my chances of success by at least 60% or even more, and this is only because I can instantly place buy and sell orders where orders are placed. And capital is flowing in it, let me see.
Jason Ramos of OTG supports the claim, saying:
It has nothing to do with luck and it depends on the pros and cons of each trader.
Peter Becker explained to us that understanding market mechanisms increases your chances of success in trading, and vice versa, random trading is the main enemy of traders.
Although volume, liquidity, and market depth are the most popular metrics used by traders, you should always consider risk management as part of your strategy. To be successful, you must learn how to control yourself.
9. Control your emotions
It is important to define the risks for yourself and to accept the fact that the spread of fear in the market is a good opportunity to make a profit; However, a strong strategy can minimize your losses. High emotional intelligence can also have a positive effect on your trading process and lead to your success in doing so.
Matt Davio, a futures trader, says:
Trading is an endurance sport.
Andre Nastasi believes that paying attention to other people’s opinions is less important than paying attention to the transaction process itself, because in the second method you gain more experience and knowledge. Order management should be your second step after risk management.
Luis Recabarren, a trader and private equity manager, said:
Sometimes you have to be aggressive and sometimes you have to be calm. In this work, like any other activity, you must persevere to reach a sustainable level. Do not fight the market, but try to monitor its movements and act accordingly.
Saying no to the wrong trade and taking a short break after a loss will help you make a profit. Conversely, following extreme emotions and reactions increases your risk. Remember that tomorrow is also God’s day. Some traders include a few minutes of meditation in their work plan to manage the high risks of doing so. This removes negative thoughts from their minds and gives them a calm mind.
Learn to sleep well, exercise, take walks, go on vacation, and spend time with your family. Having a balance between personal and work life will reduce your stress and improve the quality of your work decisions.
10. Love your work
This slogan may seem like a cliché to you, but it is very important for working in this profession. If your only motivation is to make a profit, you will not succeed in the long run. Traders are immersing themselves in their work and are constantly discovering better strategies and learning more about the industry or their favorite stocks. Most of the traders interviewed had no plans to step down. They all enjoy their work and intend to continue to do so as long as they can to enjoy it.
Remember that happiness is the result of proper planning. Try to have fun every day, learn something new and help someone.