Trading in the crypto sphere is much like playing a mind game. Since there is a lot of uncertainty in the markets, the chance of someone winning more than half of the trades they execute is very small. According to statistics, only about 10% of traders generate returns from their investments consistently in the digital currency marketplace.
In cryptocurrency trading, the outcome is usually uncertain because there are a number of factors that drive the markets. People have a misconception that successful traders win all the time. This does not happen. No matter how experienced or successful you are, you will always be faced with uncertainty when you are trading.
Successful traders are those who trade with discipline. They do not complicate trading by getting emotions in between. They are prone to making mistakes, but they are the ones who accept their mistakes, learn from them and move on with trading.
It is important for traders to have an edge in order to tackle the complexities involved with crypto trading. But no matter how hard some traders try, the ability to gain that edge doesn’t seem possible. The possibility just seems too far away and out of reach. So is there anything that traders can do in particular to improve their chances of success in the digital currency trading industry? Is there really a missing key to your trading success? If there is, then what is it?
What’s in the mind?
Your success in trading could really depend on what’s there in your mind. Are you a disciplined trader? Do you remain focussed when you are trading? Do you have adequate risk management strategies? What are your thoughts about using a trading method such as a software to conduct complex tasks for you?
The missing key could just be a disciplined mindset. It could be your patience, your reactions to events or losses, your emotions or your state of mind when you are executing trades.
The psychological elements should not be ignored when you are trading in the digital currency marketplace.
Remember, trading is a war
When someone wins, someone losses. This is the truth about trading. Whether you like it or not, but you should be prepared for losing, because it is inevitable. Losing is a part of trading which doesn’t feel good, but we all need to become used to it.
As a newcomer, you will have no experience or knowledge of trading. You will be prone to making more mistakes than the others. But how you accept those mistakes and how you learn from them and how you apply your knowledge can make a huge difference to your experience.
While your losses will give you experience, it will also enable you to develop a disciplined mindset which is crucial for success in the industry.
Some traders don’t like the idea of trading with discipline. They don’t follow rules because they believe that the crypto industry is about luck and money can be made easily in this industry. It is true that sometimes you can win on luck only, but if you focus on luck only, your chance of success will never be more than 50%. To be successful, we all know that you need to cross the fence and stay on the winning side, which means that your success rate should be more than 50%.
It’s time to change your mindset
While the missing key to your success is a disciplined mindset, the mistake could be the way you are thinking. Remember, the market is never wrong. If it behaves in a particular way, there are reasons for it. If the market doesn’t move in a direction you have predicted, then it is you who is making a mistake. When you lose, you were wrong about your judgements. So accept this fact and change your mindset if you think you will always be right.
Successful traders encounter numerous losses before they execute a winning trade. The difference is that the amount they are able to recoup with one winning trade is bigger than the amount they have lost in ten losing trades. Therefore, despite the fact that they lose most of their trades, they manage to achieve positive results and outcome at the end of the day.
When you change your mindset, you will be able to accomplish all those things which you thought you wouldn’t be able to.
Perhaps, you are not able to get on the winning side of the fence because you overtrade, hold your positions for too long, lack knowledge in trading and execute mediocre trades. The reasons can be many, but you can overcome them all by giving them a thought one by one.
It all comes down to planning
Having a set of rules and trading according to plan is important. Even better is making use of a trading robot like BTC Profit and programming it with your set of predefined rules to ensure that you don’t deviate from your original plan.
Your experience in the bitcoin trading industry will help you develop the mindset of a professional and successful trader. It will help you understand the markets before you trade. Whether you are new trader or someone who has experience in the industry, you must be informed when you make trading decisions.
The crypto markets never sleep and there are profit-making opportunities round the clock. So in order to take advantage of the opportunities, you need proper trading strategies and the right tools. You won’t be able to do it alone in the crypto industry so don’t even think about going all by yourself. You must equip yourself with tools and programs that will help you tackle the obstacles that come between you and your success.