Cryptocurrency trading, or any other form of online trading demands a lot of skills, knowledge, commitment and discipline. Beyond the simple academic knowledge of being able to interpret chart patterns and market behaviour, there are some fundamental habits that a trader needs to develop in order to succeed in the art of trading.
A lot of times, beginners in online trading wonder why they continue to lose money, despite putting in their best efforts in trying to understand the markets. It is common to find people, especially young ones who have blown a couple of trading accounts. These same people will accurately analyze the markets when they are not trading. They will interpret the charts excellently and provide what is always close to expert opinion about the effect of news on the market.
Mentorship is Important for New Crypto Traders
On a rather surprising note, whenever it is time for proper action, all the knowledge seems to fly out of the window. This is similar to the description that the sound of the first bullet at the warfront deletes everything that a fresh recruit learns in the military school.
No matter how rampant this situation has become, it is not a hopeless one. Older heads, and those who are more experienced in the market always have a way for providing guidance to newbies in online trading. This is why in most cases, a mentorship period is advised, where a new trader pays close attention to someone that has gone ahead and is doing well.
In such cases, there are things to be learned that are not usually included in the traditional learning curriculum. Some of these things have to do with behavioural traits and emotional management. These are elements that vary from one individual to another, therefore you must be patient enough to chart your own course based on the universal backdrop that is contained in this FREE eBook.
Some of the elements that go beyond just academics in the world of trading are explained by Joseph Samuel, a renowned cryptocurrency trader and trainer. Samuel is also the Head of User Growth and Education at leading cryptocurrency exchange, KuBitX. He identified some of the habits that make newbie traders lose money as follows:
Trading surely goes beyond knowing how to click the buy and sell buttons on the screen of your computer. There is a lot of value inside the cryptocurrency or forex market. In order to extract such value, you must work hard to acquire knowledge. “Even God said “my people die for lack of knowledge”, says Samuel. He notes that the same applies to trading. Everyone wants to make money but no one wants to pay the price for knowledge. Samuel invests his time teaching people how to make money trading Bitcoin. (to learn how to trade bitcoin, click here).
Everyone knows that greed is the cause of many of the problems that the world is facing today. Wars have been fought because of greed, nations remain underdeveloped, epidemics have spread, generations have perished in poverty, yet the human appetite remains unsatisfied.
Unfortunately, this same element has a self-inflicting consequence in various aspects of life, and trading and investments happens to be one of them. For many beginners, after acquiring knowledge on how to trade cryptocurrency, they fail to learn how to control their greed. Samuel describes it simply as that moment when you’ve gained $200 and you’re saying to yourself “I’ll wait for it to hit an extra $200”. This desire to want to get more always leads a lot of people into losing what they already made and even losing much more.
Although some traders argue that low capital makes people to make greedy trades, Samuel strongly disagrees with such an opinion. He explains that if a trader can be greedy with $100, the same trader will do the same when given $10,000. Huge capital doesn’t kill greed.
As far as Samuel is concerned, after learning and mastering how to control greed, time management should be the next thing a trader needs to learn. According to him, the market is always alive 24/7 and you need to know what trading time works best for you. You need to also make out time to improve yourself through knowledge acquisition.
Online trading is a continuous process, whether cryptocurrency trading or forex trading. As the world changes, the market changes with it. Therefore, a trader’s success also depends on how much he is in tune with the market. Samuel insists that every trader must make out time to study and understand the trends per time.
“Once you can continuously keep learning, controlling your greed, and managing your time, then you’re good to go,” concludes Samuel.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.