How trade cryptocurrency like professional :
it is so important to know this 6 simple rules.
#5 Taking losses personally
Amateur: It is hard to accept that your trade idea was wrong and that you are going to lose money. Especially new and inexperienced traders can’t accept to be wrong and when they see that price is about to hit their stop loss order, they will do one of the following things:
– Setting a stop loss further away to delay the loss
– Adding to a losing position to get out of the loss faster when price turns around
– Taking off the stop loss order completely because eventually, the price will have to turn around
All these tactics will lead to large losses and to margin calls. A trader who is engaging in one of the three mentioned scenarios is as far away from becoming a professional trader as possible.
Pro: The professional trader lives by the following two principles:
– One trade is just one trade and the outcome of one single trade does not matter
– The stop loss order is the price where you fully accept that your trade idea was wrong and where you WANT to exit the market
The professional trader knows that the outcome of one trade is totally irrelevant to his trading career. Whether a single trade is a winner or a loser does not matter because there will be 400, 500 or 800 trades coming soon where he can make money. A professional trader also accepts that a stop loss is the place where his trade is wrong and that he is happy to exit the trade because it is not going to make him money.
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