This isn’t Nam, this is trading, and there are rules… The quickest way to get your trading account marked to zero is to not follow your trading rules. Wait, you have rules for your trading strategies don’t you? If you do not, then you are just a pacifist floating in the wind and you need to take a step back and look at what you are doing with yourself.
If you do have a set of rules for your trading strategy, the most important thing is to, well, FOLLOW THE RULES! If you cross the line, your account will likely hit zero, then you are pretty much out of luck.
I caught myself not following my rules the last couple of days and basically gave back all I made and then some messing around and trying to do stupid stuff that I knew I was taking on more risk than I should. So I broke my rules. But I caught myself before things got really bad. All this even after the conversation I had with @taskmaster4450 on this very subject on Monday, lol. If you missed that podcast, which so far I can tell many have, you can listen here: https://leofinance.io/@thelogicaldude/oyxeeynp
Every Trader Needs A Set Of Rules To Abide By
Trading is no different than any other business. You need a set of parameters to follow to be successful. Every trader has a different style and take on the markets so therefore you will have a different set of rules.
Some traders like to trade on the real fast time frames like me, and if you do not abide by your set of rules, you will get wrecked real quick. The rule I kept continuously breaking was to wait for confirmation on a move. I kept trying to front-run a move that I thought was about to happen, only to get stopped out when the trade went the other way.
I love catching scalps, but I made a rule in my playbook that I would not play any timeframes below the 5-minute timeframe, and only use that for entries and exits, but I started dabbling in the 1 minutes candles and got myself trapped a few times.
Another rule I broke was NO REVENGE TRADING… This is a big one for me. I see the trade going the wrong way and get stopped out before I can do anything, but then I see it try to move the other way so I try and catch it in the other direction to make up for the previous loss. When I do this, I usually lose that trade as well.
Patience Is One Of The Hardest Parts Of A Trade
When you are looking to get in a trade or are currently in a trade, you get anxious, everyone does. Same thing as if you are playing in a poker game. When you have money on the line, you tend to be a bit on edge, so in my case at least, learning patience and letting the trade come to me, then confirming the direction, before I get into a trade.
One issue with me is that I am a very short-term-minded individual. I have a hard time looking for the long term that my trades reflect that. I am usually looking for quick in and out scalp trades, but end up paying the price on my small account in trading fees. I get anxious and I will sometimes get in or out of a trade too quickly and either straight take a loss or leave money on the table in the way of smaller profits.
So by saying this, I need to readjust my strategy to maybe look more at intra-day swing trades versus looking for quick in and out scalps, being that I am trading with a smaller account…
Keeping Yourself Accountable
Being a solo trader can be extremely hard because you don’t have anyone but yourself to be accountable for. At least by posting things here on Hive and LeoFinance, I have a community of people that I can write to who can maybe learn from my mistakes as well as help keep me accountable for my own mistakes, and maybe have some insight on how I could adjust things.
I am thinking about really trying to build a trading group on Discord using the Coin Logic server, so maybe we can build a team of traders that can all help each other conquer the wild Bitcoin and greater crypto markets!
Follow The Rules And Succeed
All this is to say that if you are serious about trying to make a living as a trader, then you have to create a set of rules to follow. If you are trading different assets like stocks, you may have a different set of rules than someone trading straight crypto like myself. In that case, you need to follow the rules based on the markets you are trading, although there is a lot of correlation when it comes to charts and the way things work. Remember, it’s all just a supply and demand auction, people just like to make it more complicated than it has to be. So simplify things for yourself and keep to the rules!
Until next time traders…
Be Cool Be Real and always Abide!
Nothing said is financial advice.
This is for educational and recreational purposes only!
Stay safe in these volatile markets and don’t get rekt!
Post reblogged by @coinlogic.online on Hive. So if you want to follow only my crypto articles, then check out that account. Or, follow the markets and get the latest data and news on Coin Logic
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