If you can't answer these questions right away, your previous trading successes may have been a pure coincidence!
If you want to be successful, you need to know what is responsible for your success in the crypto market. Intuitively, every crypto trader and investor set out to find an answer to this question. Unfortunately, many focus on purely "technical" factors or questions such as:
- Where is the price going next? How can I reliably recognize this?
- Which setup is successful?
- Are these buying prices?
Like a fortune-teller, you could reliably answer these questions. However, successful traders are not fortune-tellers. We would go so far as to say that these questions are relatively irrelevant to their success. Even if we can predict a rally of 20% with a high probability, it doesn't necessarily do much good. Many of my trades would end up with a profit, but if I put so much money down on the few losers that all my earnings are pulverized, my good prediction does me no good. So you see, there is more to successful trading than answering where to go.
Three components of the success of professional traders!
Let's approach what makes a trader successful from a different perspective and look from above at the challenge of successful Crypto Trading. From this perspective, we can identify the fundamental components of success in crypto trading. Successful is not the detail with which TRADER A doubled his account in the last years. What is relevant for success is what all successful traders have in common, and we would like to tell you about three of the essential components of success below.
1. successful crypto traders feel comfortable!
As a successful trader, you use your strengths in everything you do, and you can even use weaknesses to your advantage. They are in their trading niche with their trading. This means that you have found your market, time frame, trading style, and methodology. For successful traders, trading is a flow experience, not a constant struggle.
If you want to be successful, you need to find your trading niche! It makes perfect sense to look over the shoulder of successful crypto traders. An excellent place to start doing this would be, for example, our Fatpigsignals VIP Trading Signal service. Here, in one fell swoop, you can watch more than a lot of experts doing their daily work, ranging from active traders with long-term trades to long-term investments in liquidity pools or a portfolio builder. This will give you a sense of which niche you want to push in the crypto market. Then you can take the ideas from the experienced traders at Fatpigsignals and individualize them over time, exactly how you want and need to achieve your goals.
2. successful trading consists of ...!
As a successful trader, their trading approach consists of "setups" & risk and money management. In addition, successful traders are managers and not fortune tellers. This also means that you are ready to change your mind from one second to the next as a successful trader.
Most successful crypto traders have room for interpretation within their trading logic but repeatedly repeat the same basic patterns. We call these basic patterns, including their room for interpretation, setups. It does not matter whether the ways come from fundamental analysis or chart analysis. Often these basic patterns are also elementary but practical principles. Such principles include, for example, letting profits run and limiting losses. Also, statements like "a good trade run up quickly" belong to this principle. When such principles are combined, the result is highly profitable trading.
Many crypto traders act far too randomly, fickle or impulsively controlled. Today it is the trendline that is to be used, and tomorrow the current headlines have turned out badly and should lead to a falling price. In the next week, one hears then from a new product of company A, which could mix up the market. So why not pick up on this idea and invest in this crypto project for the long term.
Of course, such an inconsistent approach can work over some time. However, it will not reproduce their business and thus their profit. Moreover, you are not building up any deep experience at all. You miss out on becoming a specialist in a particular field. But this is precisely what you need because, in the crypto market, you will only win if you are better than the others. It would help if you had the edge over the masses. Please do not confuse the last statement with looking into the future. If you implement the three components of success mentioned here, you will have such an edge.
3. time, patience, practice, and learning loops!
The crypto market is a dynamic entity. The world is changing, politics are changing, and the needs are in a constant state of flux. Only basic principles have persisted in the crypto market even over a more extended time. No wonder we have identified these in point 2 as an essential building block for success in crypto trading. Nevertheless, trading cryptocurrencies is a constant learning process even for professionals. Fatpigsignals, among others, have found their place in the crypto market and crypto trading but are constantly questioning their trading and expanding their level of knowledge with the implementation of the yellow and the red ball. This requires giving feedback and your trading process (trading diary). What about your learning process? Do you have one, or do you trade? If so, it would be no wonder if you do not get better over months or years!
There is "nothing mysterious" about successful trading!
If you've been involved in crypto trading for a while, these three building blocks of success won't be new to you. Is it any wonder why so many crypto traders still fail despite this? Perhaps they already know the points listed above, but they do not practically implement them for themselves. For example, they consider other things, such as the perfect entry signal, to be more critical.
As a content creator for Fatpigsignals, I can only suggest you deal with the points listed here: Trading Niche, Strategy (as a generalization of pt.2), and Learning Loops.
Do you know your trading niche? Where are your strengths and weaknesses? Do you have a reproducible trading business, or do you trade "like a flag in the wind"? Are you as concerned with risk as you are with entry? Do you even know where your pain threshold is? And what do you expect from yourself? Is it okay for you to give yourself two or three years to learn to trade, or does your inner voice tell you that it will take far too long? All you need is the proper signal, and then you should be able to make a profit, right? Where is your advantage over the masses?
If you cannot answer many of these questions immediately and without thinking, or if you are generally dissatisfied with your trading, it is time to change something. Fatpigsignals supports you on your way to success. Trading is something you can and must learn! Whether with or without our help, start implementing the above points yourself. Take your time, and very importantly, keep your risk in the learning phase as small as possible and as large as necessary.
The post Three Common Features Of Successful Crypto Trading Professionals! appeared first on Fat Pig Bitcoin & Altcoin Signals.
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