If you are you having a hard time cutting your bitcoin trading losses once you're in a trade and it turns against you today, I'm going to share three tips with you that will help you turn that trading around and put you in a position to trade like a professional trader.
So we all know the feeling, we jump into a trade and in the heat of the moment when our trade starts to go bad, we started to think, should I do that one thing which I know is absolutely a good idea to cut a loss or should I just wait a little bit longer and hope the trade recovers promising to never get myself in this situation again. If this just one time, we can get through it or worse yet, adding to a losing position, you know that's a terrible idea. You had a lot of traders. The fail allows themselves to get into that situation time and time again until they deplete their entire account balance. Here's how to get out of that funk and how to start cutting your losses quicker.
Tip number one, embrace the next opportunity.
When you're in a losing trade. We tend to get stuck into thinking about that one losing trade.
We started to think about how much money we're going to lose. We start to doubt ourselves. We start to doubt or a strategy. We started to think that we're not going to be able to become successful traders and we get into negative thought pattern. Instead in your next trade, the moment you start to incur a loss, start to think about the next opportunity. This keeps your mind-set focused in a positive direction and allows you to continue to look for money, making opportunities and abandoned trades that are going against you, focusing on the next best trade or focusing on the next opportunity rather than thinking in terms of loss will put you in a mind-set to win. So take that tip to heart and the next time you're in a losing trade, stop thinking about that trade. Take the loss, cut your losses quickly and move onto the next opportunity.The next trade might be a winner and you don't want to miss it because you're too focused on the venting your previous one.
Tip number two, understand the simple math that losing less actually equals to making more.
One way to reduce your losses is to avoid jumping into trades to soon be a little bit more patient and allow the trade setup to come to you. Do not chase the price action around and wait to see everything that qualifies your trade before jumping in. A lot of the times, traders will review their trading journal and realize that this was a losing trade before they even got it. Losing less money makes you keep more in your account and allows you to trade bigger on your next trade opportunity and capitalize on a larger account balance. So start thinking twice about every single trade. I implement a five trade rule on days depending on volatility. And I say this to myself, I've got five in today's day trading session, so each time I'm about to get into one, I asked myself, is this trade good enough to represent 20 percent of my daily opportunities? And if the answer's no, I let it pass and look for the next best opportunity.
Tip number three, cutting losses quickly is what every professional trader is all about, and if you want to be a successful trader to you need to start modelling the professional traders. In this business.
There's a very common saying amongst professional traders and it goes like this. There are old traders and there are bold traders, but there are no old and bold traders, and this means if you're trading too big, you're eventually going to run into the probability of sequential losses that wipe out your entire account balance. Keep your trading consistent, keep your gains small, but regular and cut your losses very quickly and minimize your risk.
As a professional trader, you need to think about minimizing risk first and you're going to get paid reward for that, and that's the trading profit that you're going to accumulate.
So think like a professional trader and cut losses quickly. One of the realizations the traders make in their career is that if they're going to trade successfully long-term, they got to treat this like a business. Be a professional, have a discipline, have rules, and stick to your guns and you will come out on top one to learn more about managing your risk, click the link in the description and we have a whole playlist for you on how to manage risks like a professional trader. I hope you enjoyed today's three tips. Embrace the next opportunity. Remember that losing less money means you're going to make more and cutting losses is what the professionals do, so you should as well.
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