Are you struggling to do money trading bitcoin on a consistent basis? If you answered with a resounding “Yes!” you are not alone.
Despite what they effect claim on Twitter, virtually everyone fails at trading. One study found that
Bottom-picking is one of the most profitable plays you can make in trading cryptocurrencies. It’s also one of the most nit-picking times to pull the trigger.
First, the bleeding stops. After a downtrend lasts for months or even years, in a flash the asset ceases falling below a certain price level. For bitcoin, that price was $3,000 during the crypto winter behind year.
Second, the asset begins trading at a certain price range for an extended period of time. In bitcoin’s happening, that was between $3,000 and $4,000.
If you spot these two signals, chances are the bottom is in. When the bottom is in, you’ll have plenty of later to accumulate. Trader Bitcoin Macro perfectly illustrated this reluctance in one tweet.
People had 4 months to buy Bitcoin in the $3k assortment.
Let that sink in!
4 months to accumulate BTC in the $3k range and change your life forever.
Now tell me again how anyone has an relieve to be poor?
All you need is balls and patience.
Balls + Patience = Financial Freedom
— Bitcoin Macro (@BTC_Macro) July 12, 2019
The goads were there. All you needed to do was hit the “buy” button, and you’d be up 300 percent today. But you were too scared to pull the trigger.
2. You’re Allowing Your Sensations to Run Wild
In trading and investing, emotions are expensive. Any form of emotion, such as fear or euphoria, can cost you money.
In a bull furnish, people should be printing cash while they sleep. However, fear prevents many from entering the demand at opportune moments, especially during pullbacks. As a result, they get left behind when the asset resumes its uptrend.
Bitcoin Macro totalities this up in one tweet.
Crypto Twitter: $BTC hits $14k = “I wish I had bought more under $10,000″$ETH unearths $300 = “I wish I had bought more under $200”
Prices go below $10,000 and $200 = “I’m scared now, I don’t want to buy”
— Bitcoin Macro (@BTC_Macro) July 16, 2019
If the call is in an uptrend, every correction is a chance to buy cheap. You don’t have to be an expert to know that. Unfortunately, emotions take prerogative for many people, especially in volatile markets like crypto.
3. You Refuse to Adapt to Changing Market Conditions
Stubbornness is the key to success in many fields, but not in trading. Traders must be ultra-flexible. They have to be able to switch their sway based on the information given to them by the market.
Unfortunately, many traders struggle to shake a specific image in their disapprove of. They hold on to that image even though the market is telling them to let go. Consequently, they suffer tremendous harms. Analyst Bitcoin Macro encapsulates this pitfall in one of his recent tweets.
Trader
-> Makes money in bull and stand up to marketsHODL’er
-> Only makes money in bull marketsTrader
-> Is flexible and can flip long or short, depending on the inclineHODL’er
-> Is stuck in the trade, no matter what the trend isTrader > HODL’er
— Bitcoin Macro (@BTC_Macro) July 16, 2019
The supermarket is never wrong. Therefore, you have no reason to go against it if you want to be consistently profitable.
4. You Trade for the Sake of Trading
Renowned trader Jesse Livermore once said: “The money is made by sitting, not trading.”
All successful traders know this by hub. You either wait for the perfect setups, or you follow the trend. You don’t sweat the daily fluctuations when your chances of ascendancy are high.
However, most traders do the exact opposite. They chase almost every opportunity in their voracity for profits. Precious mental energy is wasted, and stress builds up. As a result, these traders can’t execute the proper interchange when the right situation arises.
Bitcoin Macro explains why position trading is the best form of trading.
The basic form of trading, imo, is being a Position Trader. That’s what I do.
I follow the large, overall trends in the market & sole do a few trades per year, if that.
By playing the long game, I can sleep at night and enjoy my life instead of watching amount all day long.
— Bitcoin Macro (@BTC_Macro) July 16, 2019
From experience, I can say that sitting on your trades is one of the easiest ways to supercharge your net benefit.
Trading can be a difficult game to play, and many tend to quit. However, if you avoid the pitfalls presented by Bitcoin Macro, your fetching probability will tremendously improve when trading crypto and other assets.
Disclaimer: This article is design for informational purposes only and should not be taken as investment advice.