Trading appears to be an appealing way of earning, doesn’t it? In plenty of articles, efficient trading strategies are described, along with all opportunities to get solid profits being even a part-time trader. And these statements are quite reasonable: you just need to identify a trend on a chart, jump on this train and let the profit flow. There is no need to monitor the price of the coin every minute. That is why it is truly called a comfortable and profitable strategy, not really stressful, and a good one for start.
But… you lose.
A lot of beginners constantly lose and finally fail to continue their career path in trading (actually, 95% of traders do so). The question is simple – why?
We’ll consider 6 reasons and explain how to act in each case to stay profitable. Here we go!
Is trading a casino?
First of all, it is all about your own perception of trading. Yes, psychology is ubiquitous, it is everywhere!
If you see trading as a casino, run away from it or change your point of view.
It is not a random game! Even though there are traders who use intuition only, the professionals define trading as a strict following the strategy, examined several times, relying on precise analysis and complying with money and risk management. Observe the outcomes of breaking the rules of trading strategy.
That is why recording and analyzing trading statistics and performance indicators is an integral part of successful trading. This is what you base your decisions on. This is what you evaluate and use to improve the results. Each detail should be taken into account to have a clear understanding of your strengths and weaknesses that help you to improve your skills and, therefore, profitability. The stats can be recorded manually. However, remember about human mistakes and understand that this process is indeed time-consuming! Fortunately, with Bitinsure, you can use automated statistics that is recorded in real-time and presented via sophisticated charts to help you to get valuable insights on your trading, make smart decisions and spend your time on what matters exactly for you!
Afraid to risk?
Secondly, ask yourself if you are afraid to risk. In the case of “yes”, it would be better to go to the bank than to trade. Undoubtedly, these fears are justified, but the thing is that risk is an integral part of trading, even though you can regulate it. However, high risks are followed by high profits, and if your appetite for risk is extremely low and you cannot help yourself, then supposedly, trading is not your cup of tea. Or just help yourself in it.
At the same time, even with the right risk perception and no fears about it, people lose and fail. And this is normal! But we are aimed at maximum profits & minimum losses. That is why it is highly recommended to mitigate the problem with professional software that controls a wide range of risks in trading and notifications you if anything goes wrong. It saves your time and money and generates great value in the long term. The world is automated, so, keep up to date. The bots rule the market, and it is almost impossible to compete with them manually.
If you understand that you are not a risk-taker, probably it would be wise to try investing.
And what about knowledge?
Just remember the stories of successful traders – Jessie Livermore, Benjamin Graham or Warren Buffet – have you ever noticed that they stopped enhancing their skills? Of course, no. Here it is necessary to keep in mind that:
There is no limit to perfection.
No one can have absolute knowledge of financial markets and the economy. Therefore, to earn more, learn more!
Besides, the crypto market is really changing at a fast pace, that is why it is so essential to raise your qualification as well to continue being successful.
Enough money?
Yeap, crypto enables to start trading with small sums of money.
However, it should be noted that trading does not ensure huge profits if you trade low volumes. That may be considered a problem, as to earn a considerable sum you need to possess already a big sum. Otherwise, you may be not satisfied with the mediocre result. Here margin trading might come for your help:
You can use leverage to increase your profits from operating with small sums.
But there are its own underwater rocks. The main is that lending assets are resulting in a significantly increased risk. If you earn, you earn a lot, but if you lose – you lose proportionally! That is why a solid experience for margin trading, along with training with small sums are highly recommended.
Some support?
It’s not easy to go deep into trading without any support. No doubt, you are able to find brilliant literature or video courses on the Internet. And, supposedly, you will be trading not in a bad way, however, agree, that any support, be it a professional tutor (which is the best scenario) or a person studying trading too, some trading championships and so on will be highly beneficial, helping the knowledge to be absorbed much faster.
Are you aware of tilt?
Sometimes inexperienced traders are losing their deposit in a matter of minutes. The string of failures in the majority of cases cause tilt*.
* ”Tilt originated as a poker term for a state of mental or emotional confusion or frustration in which a player adopts a less than optimal strategy, usually resulting in the player becoming over-aggressive.”
The definition came from poker where participants experience almost the same pallet of emotions than traders. Find the insights and comparisons in our article.
This disappointment may make you feel like trading is none of your business. Finally, you see all the risks waiting for you and you step back. This is exactly the time to evaluate if all the way you already have gone is worth cutting. Answer the question if you could improve the situation with more practice and knowledge? Or with the help of professional software that precisely monitors your risk and keeps it under control without any emotions! With it is possible to stay a human without trading losses.
So, can trading become your job? Is it possible to make money affording the life you want to live with the help of it? You may ask lots of professionals or amateurs, and certainly, you will get as many answers as many people you ask. The instruments are in open-source, the knowledge can be gained, but the question here is simple: Are you really ready to invest your time, efforts, and money to enhance skills and use professional software? Are you ready to take risks and bear responsibility? If yes, you are already on the way to becoming those who are this 5% who are multiplying the deposit within 9 months. Just do it!
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