I see so many people go astray and out of their way because of someone else decision which at the end of the day results in a wreck in finance.
Please read this till the end as I want to expose your mind and head to some secrets here.
Do you know that your friends that tell you about a particular trade to take might not take the trade themselves?
Or perhaps got liquidated before the trade go in the favour of what he/she predicted.
Let me elaborate on this and tell you guys a short story.
I know of a friend of mine, who always predict about market trends if it will go up or down. This guy is quite good no doubt but has a flaw.
He doesn't make money even from his own analysis.
These two things usually happen:
Either he got liquidated before the market starts going in his direction.
Or got out of the trade due to fear, and he won't later take it
Most times, this thing is very common to my friend, I only know this because he's very close to me, but mind you, those with who he usually share his analysis don't know that what he's passing through underneath, and of course, he wins the trades sometimes, but most times don't
Now, What's the point here.
When it comes to trading, it deals a lot with what works for you, not what works for someone else.
Trading as a whole has to deal with a lot of psychology and emotions, when you follow another person's kind of trade and it doesn't work for you, then you might be losing funds.
As a trader and investor. Here is what works better for me.
I follow many updates in the Cryptocurrency market but I stick to just one person update, my trading style took after him and each time I go out of my way to trade what I don't trade, then boom, I lose money.
Cryptocurrency can make you money if only you will stay true to yourself and not someone else.
I don't really trade futures, my trading style is good to say as 90% spot and 10% futures, have done so wonderfully with spot.
You will even make more money in the spot than focusing on futures (this works for me), spot isn't just binance now, it cut across trust wallet and other crypto exchange.
Now, am I saying futures is bad? NO, I am not. But futures will play a lot with your emotions which is not a best place to be for beginners unless you want to learn the hard way by losing your funds on it.
Here is a good strategy I use in trading.
A buy and hold, and buy dips (this is where the money comes from) and it will always happen, it's normal for market to always draw down to supports.
All you need to do is to prepare and buy more of it. **IF THERE IS NO DOWNSIDE, YOU WON'T MAKE PROFIT, ** your profit comes from a down market, you need to orient yourself to this.
DO I TRADE FUTURES?
Yes, I do. But I trade it mostly when there is a big support and a huge drop. E.g
The drop that happened last, boom, I entered futures and i am still in the trade, while trading it, I take cautions and I don't carry all my portfolio to it. I always see those drops as a huge opportunity
And like I said, I am not a fan of shorting BTC unless we are in a bear market, and we aren't even in a bear market yet, this are assets, designed to go up against US dollars. I play safe and risk reasonably
You don't need to be emotional and lose funds, you can trade and make lots of money doing this and using this techniques.
SEE, THE BIG PROBLEM IS WHAT I HAVE DISCUSSED EARLIER, Do not see it as a mere word or statement, most of the people you see or follow that make you go out of your way lose money even from the trade they give, using the criteria I said earlier.
If you can remove emotions in your trading, then, you are many ways ahead.
Here is the thing,
Have a mentor who you follow their type of trade, make sure it works for you. ( I have given you an easy way of trading which will reduce your emotions)
Because, each time you want to go out of your way to trade something else, then you might lose money.
Follow random updates, but you don't need to stick to them.
Stop blaming yourself for not following or not taking a particular trade that isn't your style.
Stay true to what always give you the Money.
I have my experiences, so I stick to what work for me, and that is how I have trained my myself.
Before you blame yourself and look up to someone's else trade, make sure the person is also making some money from the trade he analysed or gave to you.
Don't be led astray, stay focused and stay true to your game.
Each time I lose focus out of my way, it cost me money, so this is me telling you from experience
I share this because, you don't need to lose your funds looking at someone else success.
Don't be emotional because of a winning trade and go out of your way for it next time.