ALTCOIN EXPLOSION & PSYCHOLOGY
Hello everyone!
Today is more like an informational post than one just about technical analysis. I will focus more on trading psychology since this point is more important if you wanna call yourself a successful trader.
On this chart you can see the total market cap, excluding BTC on the 4h time frame. I have hallmarked a typical cup and handle pattern. This one is easy to identify and performed well during this bull market so far. The cup and handle pattern is considered to continue the previous trend, which is clearly up. An inverted cup and handle is more likely to be seen in downward trends (bear markets).
So WHAT does this chart have to do with trading psychology now?
I have also made my lessons. A successful trader is losing too. The difference between a successful trader and a beginner is that the prosperous makes sure that the winning ones outweigh the losing ones and of course, he has a better mindset than the amateur. The advanced trader also knows how to read the charts and how to behave during times of blood. Everyone knows what's next, but only a few people will make it.
Do you know which kind of people?
- those who do not oversize/over-leverage (manage risk)
- manage timing/entry/sizing combined
- have a big picture in mind and act in relation to that ( pirmary-/ secondary-/ minor-trend)
- point 3 includes also a cold mind because every day you are making a decision about:
>Should I stay in the trade?
> Should I exit?
> Should I add some size because of discount prizes?
> Should I exit and wait for a better entry?
> Should I add more leverage because it is a ‘no brainer’ trade?
> Should I add some more positions because all coins show equal patterns and I am gonna be rich after that trade?
..Everyday you are asking yourself one of these questions in one form or another, whether it is consciously or unconsciously. A trader's mind never sleeps.
This is me for today. Hope you like it. Let me know in the comments below what I can improve.
Cheers!
Today is more like an informational post than one just about technical analysis. I will focus more on trading psychology since this point is more important if you wanna call yourself a successful trader.
On this chart you can see the total market cap, excluding BTC on the 4h time frame. I have hallmarked a typical cup and handle pattern. This one is easy to identify and performed well during this bull market so far. The cup and handle pattern is considered to continue the previous trend, which is clearly up. An inverted cup and handle is more likely to be seen in downward trends (bear markets).
So WHAT does this chart have to do with trading psychology now?
I have also made my lessons. A successful trader is losing too. The difference between a successful trader and a beginner is that the prosperous makes sure that the winning ones outweigh the losing ones and of course, he has a better mindset than the amateur. The advanced trader also knows how to read the charts and how to behave during times of blood. Everyone knows what's next, but only a few people will make it.
Do you know which kind of people?
- those who do not oversize/over-leverage (manage risk)
- manage timing/entry/sizing combined
- have a big picture in mind and act in relation to that ( pirmary-/ secondary-/ minor-trend)
- point 3 includes also a cold mind because every day you are making a decision about:
>Should I stay in the trade?
> Should I exit?
> Should I add some size because of discount prizes?
> Should I exit and wait for a better entry?
> Should I add more leverage because it is a ‘no brainer’ trade?
> Should I add some more positions because all coins show equal patterns and I am gonna be rich after that trade?
..Everyday you are asking yourself one of these questions in one form or another, whether it is consciously or unconsciously. A trader's mind never sleeps.
This is me for today. Hope you like it. Let me know in the comments below what I can improve.
Cheers!