I have never worried about the digital currency market as much as I worry about it today. The market situation is very bad. Frankly speaking, it is weakening my sleep mode, and it is destroying my work efficiency. I’m torn. Should I sell or hold? You’re in the same boat, I know.
You can’t keep yourself away from the chart. Every 5 minutes, a small voice comes into your mind.
"Look at the chart, maybe the market has changed," the voice said.
You know that the market will not change. You also know that looking at these price charts won’t make you feel better. But you should do it anyway. Because you have real money invested in the market, and lots of it.
This is not the first time you have done this. Maybe this is the second time. No, no, it’s at least the third time. I know it’s painful.
What I’m about to tell you next will change your trading skills forever. These contents are not only applicable to the digital currency market, but also applicable to trading in any market, especially in the bear market - as we are facing, it is very necessary. What I want to tell you is how to keep calm when the “fire alarm” flashes.
I will tell you what trading skills I learned after interviewing 19 digital currency trading professionals for a week.
Now it seems obvious to me.
But I have changed this plan too many times. It’s too easy to say that you have a trading plan, because most of us have a loose definition of entry before trading. However, there is a huge difference between making a plan and sticking to it.
I know you may have made the same mistake before. You often change plans at the last minute, so you buy too early or sell too late.
You need to set standards. When the market appears in one way or another, you must abide by clearly defined rules. Every professional has a trading plan - they follow it faithfully.
So it’s time for us to think like professionals. It’s time to make a trading plan. The trading plan can help you focus on the key points in all transactions.
After making the plan, I want you to print it and paste it in the place where you do most of the transactions. It needs to be in the obvious sight. When the market meets the threshold in any of these plans, what you need to do is execute.
Writing down the plan and putting it in front of you will make it more difficult to ignore.
Attention: Sometimes, it is also helpful to go through some sort of fire drill-like training. For example, I often ask myself, “If the market crashes now, what will I do?” - If the answer is “Nothing,” then continue what I am doing. If the answer is “I will never recover”, please reconsider your method.
Browse your portfolio and separate currencies with long-term potential from currencies without long-term potential.
This is a bear market. The ship may not have started to sink officially, but it will definitely go through a rough process.
Any extra weight will make you sink faster.
Henry, a trader with seven years of stock trading experience and digital currency trading experience, told me about his trading plan in the case of a sharp decline in the market.
“Reduce your weight. In a bull market, hold your position and stick to it. In a bull market, the investment target you choose is not important - the market rises, everyone is a winner, but some people win more than others.”
Because in such a market, everything is changing. You are taking risks with real money. If you don’t act quickly, you will lose them.
Henry stressed how important it is to take decisive action when the market falls. Not acting in a timely manner results in everything coming to naught.
Even look at currencies that you think have potential in the long run.
Ask yourself, is the risk worth it? Because if you exit, put your money into a better investment target or you really believe that you can resist the risk of price collapse.
Henry is very good at his major!
ACTION: Add this to your trading plan list, list all your currencies and their priorities. When the market collapses, where will you start to cut investment or loss?
You need to stay away from the nonsense of those warlocks and bullshitters.
Of the 19 professional traders I spoke with, all 19 emphasized this point.
Long-term profit means positioning yourself in front or behind the crowd. Never be in the crowd. Stay away from chat rooms and trading forums. Each of these groups has his own motives.
Many people spend their time in discussions like Slack, Reddit, Telegram, Facebook, and Discord… The list continues. You need to keep a distance from these groups. There are too many wrong messages spread, which will lead you to make hasty decisions and buy and sell too early.
Your only job as a trader is to observe charts and make judgments. To make accurate judgments, it is not necessary to collect as much data as possible. Only obtain quality information, which need not be too much, but must be correct.
What kind of information is quality information? Some traders suggest joining VIP groups. These are closely connected communities, and they hope to share their views and conduct better transactions as a group.
ACTION: Question your source of information. Ask yourself - is this information necessary? Do I focus on the sources of information that really help my trading actions? If not, delete them.
The suggestion comes from Sparky, a trader from Sweden. Sparky is 43 years old. He has a wife and two children. Due to family reasons, his trading time is limited. So he came up with an ingenious solution.
Sparky has a small team of five traders. Each of them subscribed to 2-3 main sources of information. Every day, they study these resources and send the best data back to Sparky, which is everyone’s mission.
Only the best of the information is shared.
Sparky made five times better trading decisions therefore.
It’s not difficult to start!
ACTION: Go out and socialize, find a few people who make trades, and those you trust. Start group chat on Facebook Messenger or any platform you like. Each of you should study 2 - 3 reliable sources. Team members should study their sources of information every day and pass it on to only one member of the team. Don’t share it with everyone. Only focus on the sources that are critical to the transaction decision.
“Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.” - but you can’t effectively “teach” when you don’t even have a fishing rod.
Let me introduce some good “fishing rods” and help you install them. Here are some useful trading tools I found when talking with professional traders.
TradeingView is a very good platform that can apply almost all content related to digital currency transactions.
This tool will take you to a new level of experience. One of the best functions is the split screen function.
The software supports up to four independent and fully interactive price charts in any window. You can control each screen, each indicator, and each chart separately.
TradingView is like a task control center, controlling every currency you have as you like.
We have all experienced that the price warning sounded at 4am. You are bullish on the market, but the price has been falling all night, and you’re about to reach the stop-loss. Your price warning sounded, but you didn’t wake up. In the morning, the price is deep red, and you are in a completely unprotected state. If this has not happened to you, I promise you that it will happen.
This is where Signal made by Signalgroups.com can be used. You can stop profit or loss at the same time. Therefore, you can take a rest without having to pay attention to the price in front of the computer all day.
If you take your transaction seriously, you must be prepared for this feature.
The best digital currency quantitative trading platform in the world. Now that you have read this article, I need not say more.
To put it in a nutshell…
Trading is a stressful job - I’m sure you don’t need me to tell you. But when you properly arm yourself with the best skills in trading, you will dominate.
I hope these suggestions can help you - here are some key points I extracted from the sharing of these 19 traders:
Develop a trading plan: prepare for every possibility and always have a strategy for closing your positions.
Choose your currency wisely: invest in the currencies that can make profits only, and reduce the currencies that cannot make profits.
Reduce noise: Be suspicious of the masses, which will affect your thinking and make it more tempting to make unreasonable decisions.
Build a star team: find the traders you trust and let you know the situation in time.
Use professional tools: these and your careful attention will be the biggest improvement in your trading career.