Hello traders,
I decided to test my effectiveness and researched a few topics that have long interested me. Mainly, I wanted to get to know myself and my psyche better. From the last tests I came up with very interesting results that I would like to share with you.
At the outset, I would like to point out that I have been dealing with crypto trading since 2017. It used to be just SPOT but then Futures came. I made some money at the spot in the bullmarket, but Futures allows you to gain the most but also lose everything the fastest.
Some good advice for beginners (very little really):
1) Train on DEMO accounts without money if possible. At least 6 months every day !!!
2) Buy books that describe all possible price patterns well. You need to understand what is bull flag, bear flag, double bottom, fake top, double top, and many many other things.
3) Encode in your head that technical analysis very often does not work and you should learn to observe the traditional market.
4) Take the test yourself and try to evaluate yourself. Are you greedy, risk-taking, can you play it safe, or are you a person who is mentally unable to handle losing money. If you cant handle loosing money this is not for you. Leave it and do not touch !
5) The most important rule. Only play with as much capital as you can afford to lose in its entirety.
6) Encode in your head that the prices of crypto projects move completely differently than the traditional market. Very often, traditional market graphs do not work at all when trading crypto.
7) Encode in your head that whales who play crypto are the same people from the traditional market. However, they will use crypto much more speculatively than the traditional market because currently crypto is not regulated. They will wash as much money as they can...
8) If you opened a position and suddenly you are +50% and you are not sure what to do next, you just close it and take profits. If you are not sure you should oppen position, wait few days, maybe even week and then decide.
9) Always use SL unless you are really really really professional. Sooner or later you will receive an SMS that your position has been liquidated and its over. This is very hard for everybody belive me...
10) Don't tense up, the market won't disappear suddenly. Better to miss an opportunity than to lose money. It doesn't matter if there is a bull market or a bear market. You can make money both ways, just do it wisely.
Do not use very large levers. Learn to use x3 leverage to a maximum of x5. When you are sure of your decisions, increase but take into account that then things happen really very quickly and you can lose everything in fractions of a second.
What you see in the picture above is my test of myself. I wanted to see how much money I can multiply if I really focus after 5 years of trading. For the test, I used a small amount of money to check what the limits are. I meant to multiply money as soon as possible when the risk does not exceed 10%. In a few days I made 200-300% and the number of open positions did not exceed 20. Of course, as you learn, your risk of opening a position should not be greater than 1-2% - just to remind beginners.
From my test I found that I play longs very very poorly. Practically most of my positions were shorts. This means that I made over 200% in 3 days only on shorts when the whole alt market were just growing. Now imagine what I would do if I could really play longs better. I came to the conclusion that I didn't play a lot of longs because we are in the bear market all the time and my brain is constantly telling me that some FUD will come in a moment and we go back by 20%. 20% on BTC means 30-40% on alts. After the test, I realized that if I had been playing with more money, I probably would never have opened such positions. That is very interesting. When I use less money, it looks like I'm much more effective.
Since I play shorts so well when everything is up, I definitely need to work on longs, but I'm really afraid of those because times are very very uncertain.
So that everything is not so rosy, I would like to say that I lost a lot of money earlier to make up later. Currently, I try to use futures only when I really have time for it. A very large number of positions I simply close manually and do not wait for Take Profit or SL. I keep it very simple...
The last test proved to me that if I approach the whole thing manually and monitor everything during the day, I earn the most money. This means that you need to have a lot of free time for all this and if you want to be a successful trader who makes a living from it, you can't have another job. Unfortunately, crypto works 24/h. Sleepless nights are the worst - believe me...
In fact, crypto is a river topic. It's very interesting, but I don't believe what I'm seeing at all. I use it as much as I can, but I don't believe in crypto at all. I don't believe it because 90% of projects are just scams that will not survive.
If you have free cash and you don't know what to do with it, buy some gold, silver, some different stocks and BTC for the so-called long term. If they regulate all this, even ETH can get hit so badly that it will rise from the ground for the next 5 years.
A good trader is a trader who never sleeps and constantly reacts...
Regards from the Czech Republic!
I decided to test my effectiveness and researched a few topics that have long interested me. Mainly, I wanted to get to know myself and my psyche better. From the last tests I came up with very interesting results that I would like to share with you.
At the outset, I would like to point out that I have been dealing with crypto trading since 2017. It used to be just SPOT but then Futures came. I made some money at the spot in the bullmarket, but Futures allows you to gain the most but also lose everything the fastest.
Some good advice for beginners (very little really):
1) Train on DEMO accounts without money if possible. At least 6 months every day !!!
2) Buy books that describe all possible price patterns well. You need to understand what is bull flag, bear flag, double bottom, fake top, double top, and many many other things.
3) Encode in your head that technical analysis very often does not work and you should learn to observe the traditional market.
4) Take the test yourself and try to evaluate yourself. Are you greedy, risk-taking, can you play it safe, or are you a person who is mentally unable to handle losing money. If you cant handle loosing money this is not for you. Leave it and do not touch !
5) The most important rule. Only play with as much capital as you can afford to lose in its entirety.
6) Encode in your head that the prices of crypto projects move completely differently than the traditional market. Very often, traditional market graphs do not work at all when trading crypto.
7) Encode in your head that whales who play crypto are the same people from the traditional market. However, they will use crypto much more speculatively than the traditional market because currently crypto is not regulated. They will wash as much money as they can...
8) If you opened a position and suddenly you are +50% and you are not sure what to do next, you just close it and take profits. If you are not sure you should oppen position, wait few days, maybe even week and then decide.
9) Always use SL unless you are really really really professional. Sooner or later you will receive an SMS that your position has been liquidated and its over. This is very hard for everybody belive me...
10) Don't tense up, the market won't disappear suddenly. Better to miss an opportunity than to lose money. It doesn't matter if there is a bull market or a bear market. You can make money both ways, just do it wisely.
Do not use very large levers. Learn to use x3 leverage to a maximum of x5. When you are sure of your decisions, increase but take into account that then things happen really very quickly and you can lose everything in fractions of a second.
What you see in the picture above is my test of myself. I wanted to see how much money I can multiply if I really focus after 5 years of trading. For the test, I used a small amount of money to check what the limits are. I meant to multiply money as soon as possible when the risk does not exceed 10%. In a few days I made 200-300% and the number of open positions did not exceed 20. Of course, as you learn, your risk of opening a position should not be greater than 1-2% - just to remind beginners.
From my test I found that I play longs very very poorly. Practically most of my positions were shorts. This means that I made over 200% in 3 days only on shorts when the whole alt market were just growing. Now imagine what I would do if I could really play longs better. I came to the conclusion that I didn't play a lot of longs because we are in the bear market all the time and my brain is constantly telling me that some FUD will come in a moment and we go back by 20%. 20% on BTC means 30-40% on alts. After the test, I realized that if I had been playing with more money, I probably would never have opened such positions. That is very interesting. When I use less money, it looks like I'm much more effective.
Since I play shorts so well when everything is up, I definitely need to work on longs, but I'm really afraid of those because times are very very uncertain.
So that everything is not so rosy, I would like to say that I lost a lot of money earlier to make up later. Currently, I try to use futures only when I really have time for it. A very large number of positions I simply close manually and do not wait for Take Profit or SL. I keep it very simple...
The last test proved to me that if I approach the whole thing manually and monitor everything during the day, I earn the most money. This means that you need to have a lot of free time for all this and if you want to be a successful trader who makes a living from it, you can't have another job. Unfortunately, crypto works 24/h. Sleepless nights are the worst - believe me...
In fact, crypto is a river topic. It's very interesting, but I don't believe what I'm seeing at all. I use it as much as I can, but I don't believe in crypto at all. I don't believe it because 90% of projects are just scams that will not survive.
If you have free cash and you don't know what to do with it, buy some gold, silver, some different stocks and BTC for the so-called long term. If they regulate all this, even ETH can get hit so badly that it will rise from the ground for the next 5 years.
A good trader is a trader who never sleeps and constantly reacts...
Regards from the Czech Republic!