There are many stories with titles like the one above, but today I’m going to give it a small twist. Stocks and cryptocurrencies have become the new darling of today’s youth. But only if you have thousands of dollars in your bank account, and you lose several hundreds of dollars, it won’t upset you that much.
If I were to tell you that trading is for those with deep pockets, I would be lying. But the thing is they don’t suffer any more than others who trade with their small wage or allowance and hope for the best, I’m only pointing that out.
You've probably heard the quote of the market:
Only 10% earn money in trading, 90% loses.
Because of this, many of the world’s individuals mistakenly believe that they can join the top 10 percent of earners, but it’s not that simple.
As a result of watching YouTube videos, many people decide to join the market because they think it is exciting to be a trader. Twenty-year-old me has been trading for two years, which is not enough experience, but what I’ve learned from the market is that it’s cool when your research works out.
Nevertheless, when things start to go awry, believe me, you’ll want to get out of there as quickly as possible. Many traders have departed the market because they’ve fallen victim to the wrath of the market.
As you may know, I’m 20 years old and a college student, so of course I’m going to exchange some 50 or 100 dollars, usually 200, because that’s the upper limit of what I can afford.
Let me tell you my story. As the bull market was roaring along, the so-called crypto enthusiast had entered the futures market in hopes of making a few fast bucks. Aside from ETC and Doge, this college boy has reaped some wonderful rewards thanks to Goddess Laxmi. For your information, She is God of Wealth in Hinduism.
I’ve multiply some 20 bucks into 200 bucks around, and that’s some handsome reward, so I started investing more time in trading, and it has paid off. The only two bad things that happened were that I grew greedy and that I lost a big amount of money in trading.
My Greed cost me a lot of money. As a college student, that was a significant amount for me. I lost approximately $300, and it just made me feel amazing. Amazing, in the sense, I used to tell friends not to be greedy in bull market, but that wasn’t the case when market is really giving high returns day-by-day.
When the crypto market fell by 50%, there was a lot of blood on the streets, not just a little. A lot of novices at that time have to deal with the wrath of the “crypto market.” Aside from that, I’ve learned that discipline is the only way to stay on the market, or else you’ll be thrown off by the market through bankruptcy.
Here are some points which will help you not to lose money in market:
- Fundamentals tell you what to buy. Technicals tell you when to buy.
- Use stop loss.
- Much of the trading-related news & social media troll boxes are noise. Ignore them.
- Trades should end in 3 ways: Big Win, Small Win, Small Loss
- The trend is your friend.
- Keep a trading journal. Determine flaws. Eliminate them.
- Good sleep, proper diet & exercise are just as important for trading as they are for most things in life.
- Blood in the streets…clean up the street.
- Expect consolidation after large price movements, not continued volatility.
- All indicators are using the left side of the chart to try to predict the right side of the chart.
- Chart the exchange with the most volume.
- Most traders lose a significant number of trades when starting. Those who are most successful are persistent and keep trading.
- Trade your own account. Don’t let others trade it for you.
- Agree with the ideas, don't pay for courses, experience is the biggest course. So keep trading with that money.
- Don’t make any one coin, position, or idea as your fav, there is no fav in the market. Constantly reevaluate for flaws.
- If you’re winning a lot, someone else is losing more.
- A big loss will ALWAYS be more emotional than a big win.
- You need a large sample size to determine if you are a winner or a loser. Variance happens to everyone.
- No one strategy is true. Market is supreme.
- Trading tools can get sharper or duller. Don’t be afraid to brush up on concepts you’ve already mastered.
- Look at everything as a number and not money. Always look to be increasing that number.
- Fear, uncertainty, and doubt (FUD) are great drivers for panic buying and selling.
- After a big winning or losing trade. Step away and regather your emotions.
- If you’re getting emotional in a losing trade, then your position size is too high.
- There will always be early bears and early bulls. Being right is more important than being early.
- Zoom out first. Zoom in later.
- On the way up, coins look cheap. On the way down, they look expensive. Don’t let the market play with your mind. Stick to your trading plan.
