Trading and Emotions.
If you think that learning the technique is more difficult than controlling your emotions, you’re wrong.
After a bit of practice you will be able to use all the tools and indicators as well as recognize the context of the Market.
But the reality is that the Market can change from one moment to another, regardless of your prediction. For this reason it is very important to act mechanically, with a stop loss and a take profit.
When the Market is down-trending you have to know the level of support where the price will bounce in order to buy.
When the price increases you have to know the level of resistance where the price will react and you might sell to take your well-deserved profit.
Here are the three steps to follow:
– Choose one or more coins that interest you.
– Prepare a correct technical analysis (identify the support and resistance levels of the coin and, if you identify an opportunity, establish a plan).
– Buy the asset and respect your plan.
If you win, take your profit and settle.
If things don’t go as planned, sell at the level of your stop loss and wait for the next probable trade.
In this way you will keep your capital safe and you won’t give any chance to your emotions to take over or, apart from a few very lucky cases, you’ll be dragged to a passive always more difficult to recover.
When I say that you have to recognize the context I mean that, in addition to the tools and indicators provided by the trading platform, you have to get used to consider for example the “fear and greed index” to avoid running into market manipulation traps specially designed to tempt you. Remember that if the general sentiment indicates fear, many will sell taking the asset to an oversold level and the price will rise.
Meanwhile, if the sentiment indicates euphoria, most inexperienced traders will buy at market top driven by their greed, taking the asset to an overbought level causing the price to fall.
Every single move up we’re looking to sell.
Every single move down we’re looking to buy.
You’ll have to be careful not to get too discouraged after a series of losses or get too excited after a series of wins.
Keep your cool, stay focus and control your emotions!!!
If you struggle to stay calm and make decisions with clarity, increase the “time frame”. In a graph with 5-minute candles there will be large red and green candles movements that will stimulate your emotions, while in a chart with hourly candles, movements will be more contained and this will help you not to over-react.
I am convinced that if you will be guided by the passion for trading and technical analysis instead of the desire (or even worse the need) to make a lot of money very quickly, your knowledge after this course will be enough to earn you a good profit in a reasonable time.
I find this discipline fascinating, and so should you if you want to be successful!
I always find the time to check the chart and the progression of my predictions.
In simple words, “passion” is what you need to be successful!
By now I got to a point where I don’t like to listen or follow anyone’s opinion and prediction anymore.
Especially on You Tube, all they do is confuse me and my plans.
Don’t get me wrong, at the beginning I did watch a lot of videos to learn about this world (and so should you), but with time you’ll be driven by your knowledge and ideas.
Instead, I love reading “trading books”, some of them are precious life lessons. Remember that if you’re not used to read, you can always listen to audio-books on You Tube.