I’m going to illustrate why it is that 80% of new crypto traders lose money and quit trading after a few months to a year.
Maybe you 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, crypto 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 perhaps a good 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? What is the problem with the way many new traders may have started with cryptocurrency trading?
Let’s analyze why new crypto traders lose money:
Why 80% Of New Crypto Traders FAIL
- 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 this trading situation!
When we put on a new trade and it does something unexpected, it’s a time of stress for us, isn’t it? And at that moment in time the fight or flight reflex kicks in, adrenaline is released and the neocortex of the brain puts our strongest habit into action.
Why is crypto trading so hard?
This is why I recommend that you focus on just one trading strategy, because if we have not learned trading rules and risk control rules and then practice them, if we do not ‘drill for skill’ by repeating this trading strategy over and over until it become a belief that becomes a habit, we’re simple not going to use our trading rules correctly at the right time.
We are going to look back after our trade is closed, and will say
‘oh, if only I had done that, what a difference it would have made…’
You see, in trading, it’s not what you know that counts, it’s what you do as a habit.
Often it is of no value to you, just to know about several different trading patterns, indicators and risk control strategies.
Your key to success in trading, is to follow your trading rules spontaneously – as a habit – when you are managing your positions. So start with laser focus on one strategy and get really good at it before adding more skills to your trading toolbox.
Watch the first video in the guide series!
THE Practical Guide to Cryptocurrency Trading