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The travails of a crypto trader

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Written by   178
7 months ago
Topics: Cryptocurrency, Earn

The crypto space can be very unforgiving when one commits certain errors or fails to act promptly in a market that is characterised by volatility and sometimes manipulation by whales. It is indeed very easy to be carried away when the candles are enveloped in the radiance of green. The euphoria of this sight can be so overwhelming that one forgets that the reds are lurking in the corner waiting for the Opportunity to strike catching one unawares.

The timeless advise of managing one's greed is especially relevant for the one who dares to venture into crypto trading. This is one of the rather prominent terminologies that anyone that has spent little time in the crypto space would have come across. It seems like a simple and straightforward piece of advise or word of caution but it can also become one of those things that are easier said than done.

It is even more challenging to stick to this advise when one is in an uptrend market and every prospective green candle trying to light up the chart is a temptation to crave for more profit.

My trading experience of the past few weeks has been filled with highs and lows although quantitatively the highs have had the day.

After making 90 USD from trading MANA via the Royal Q trading bot in about 24 hours and taking my profit, I literally felt unstoppable and was confident that my profit streak would continue if I ventured into another trade as the market was generally green. This was where I failed to follow a failsafe mechanism when the market has been good, know when to take a break and carefully plan for your next trade instead of jumping at the next good trading signal.

The next trade I ventured into was Looping (LRC) via manual spot trading on Binance. The first few trades were profitable. Within a few hours, I had made about 40 USD. Unfortunately for me, greed kicked in and instead of taking profit I decided to go all in probably blinded by the prospect of exceeding the profit I had made while trading MANA.

Unfortunately the market had other plans in stock for me. Within the twinkle of an eye, the green candles turned red and halted all prospects of the profits coming in. As if that wasn't enough, the dip started getting steeper or dipper as a mentor would say hence I had to call it quits before raking in losses instead of profits as the dip wiped out all the profits that I had made.

I learnt the hard way that manual trading is probably not for me at this point in time. I will likely be sticking with the Royal Q bot for the foreseeable future that is till when my 1 year license (now 120 USD) of USD 100 expires. The only shortfall I have seen with the bot is the choice of entry point for a trade as although it will only sell at a profit rate which can be adjusted by the user, there is a chance of it buying the top if a user is oblivious of the situation in the market and opts to enter a trade when a coin is at or close to its all time high.

Hence for trading newbies it's a good idea to have a mentor with experience in technical analysis to provide guidance as to which trades to enter as well as when to enter. In the absence of this the bot offers the option of copy trading via joining the circle of experienced traders while the profit is shared between the user and the experienced trader.

Going forward I intend to make stick with the three rules below to avoid a repeat of the lows of the past week:

Greed management

Always take profit as deemed appropriate

Have an exit plan for your trades and stick to it

In order to be able to stick to any of the above checks to manage one's risk, discipline is vital. Without it, one is likely going indulge oneself and hope on the mirage that the candles will always be green and the profits will continue flowing in.

Lastly if you intend to do crypto trading even if it is at the level of spot, be willing to sacrifice some money to learn from experienced traders whenever the opportunity presents itself or participate in paid seminars. Consider the money spent on such activities as investments instead of having to lose such amounts or more while trading because one did not learn about trading before venturing into it.

Shukran

Danke

Merci

Gracias

ขอบคุณ

ধন্যবাদ

Спасибо

for reading.

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Written by   178
7 months ago
Topics: Cryptocurrency, Earn
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Comments

For a financial instrument trader of any sort, discipline is the number one thing required. I have traded on forex before and this exact scenario is what played out, due to my lack of risk management and discipline

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7 months ago