- Most of the patterns fail, and most of the analyses are wrong; the key to winning in this market is your loss should be a fixed amount while your win is at least 1.5 times more than your losses. This way, you are the winner even if you flip a coin.
Choose an amount you can tolerate if you lose it, for example, 100$ (it should be a maximum of 1% or 2% of your total capital). Your winning positions should always make you more than 150$ (risk/reward ratio:1.5). Therefore, you can understand the size of your position, then you will know if you want to short Bitcoin you should short 1 Bitcoin or 0.5 Bitcoin or ...
- what you need to have is strategy; strategy tells you where you should enter and exit before you enter a position. A trading plan can also help mitigate financial risk, as it eliminates a lot of unnecessary decisions. While having a trading strategy is not mandatory for trading, it can be life-saving at times. If something unexpected happens in the market (and it will), your trading plan should define how you react – and not your emotions. In other words, having a trading plan in place makes you prepared for the possible outcomes. It prevents you from making hasty, impulsive decisions that often lead to big financial losses.
3. Here I want to share with you one of my experiences that I learned the hard way after passing millions of hours of different courses and more than seven years of market experience for each of our team members.
No one can catch the bottom and the top, so if we can capture just 50-40% of each cycle, it's more than enough; therefore, if you learn how to buy and sell in different steps, and you understand the money management and risk management, you are a hell of a trader.
I can't emphasize how important these are, but I can tell you these are more important than knowing any indicators, technical analysis, Elliot waves, and...
If someone had told me this in my early days, I would not pass so many courses.
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4. One of the most common questions you asked us was related to FEAR.
There is 4 type of fear for a trader 1. fear of being wrong 2. fear of missing out 3. fear of leaving money on the table 4. fear of losing money.
Every time you want to get into a position, these four daemons show up in your mind and start to talk to you inside your head and ask you questions like:
If it hit my stop loss, what should I do?
What if I see a wrong pattern?
What if I sell and the price continues to go up?
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