Common statistics say that 80% of new stock traders lose money and quit trading after 18 months to three years – and I would guess it’s similar in cryptocurrency trading.
To illustrate why most traders fail, and to prepare YOU for SUCCESS in your trading, I paraphrase a fantastic Personal Training Course from the 1980’s by Peter Lowe…
…adapted here to provide new traders perspective on the level of preparation required to become a confident and profitable trader.
It is very likely that most of us have lost money trading cryptos because of the way we learned our trading skills…
If you are like I was when I first started out, you set out to learn about trading from books, video tutorials, online forums and social media personalities with large followings… then you transferred money into an exchange, and were ready to find some price patterns and put on some trades!
Maybe you were just like me, and you told yourself;
‘Don’t worry if you take a loss, it’s only your first trade… what do you expect?’
So you did what you said – you put on a few trades that started well, but a few good trades and a few bad trades later, then a trade turned into a big loss…
Then what happened?
The fear of failure, the fear of loss is comes in, and now you are not sure what to do next!!
Now what’s the problem with the way I started out learning to trade? What is the problem with the way many new traders may have started with cryptocurrency trading?
Let’s analyze it:
* The problem is not that you don’t know chart patterns, you’ve studied many of them.
* The problem is not that you are not paying attention to the markets – you are watching the markets on your phone throughout the day (and night)
* The problem is – you did not have a specific plan in advance for what to do in each possible trading situation!