CRYPTO TRADING: HOW TO CONTROL YOUR EMOTIONS When Trading Cryptocurrencies Episode# 12

Hello, my name is Sean Vengan and today’s the 28th of july 2017 now the overwhelming attitude of the moment from what I’m hearing from forums and posts that I make is that is a Growing fear that the market is going to crash Now we did have a fall that we predicted that fell towards a 16th of july But that wasn’t a crash That was a correction And I’ve uh pointed out in my video in episode number 11 that this is a normal balanced market at the moment and that Correction which was an ABC Correction Was actually needed in order for the market to move onwards and upwards So today, I don’t want to cover Analysis as such although. I will be showing you some But what I want to talk about is trading psychology Because trading pSychology is the most important thing Equal to risk management that will help you make money in trading and unless you address your trading psychology You have absolutely no. Hope whatsoever of making money in trading So without any further delay let’s discuss that topic today So let’s start by looking at the chart, and this is a chart of bitcoin on a daily basis now what happened is That we had a top over here and The market started falling now those people who thought the market was going higher over here Felt the pain as a market lost a third of its value from $3,000 to roughly $2,000 and Those same people who now said okay? Let’s go short now because the markets crashing felt the pain as a market bounced further up So we’ve got fear coming down and we got fear coming up combined with the fear of the user Activated hard fork. There’s fear in the markets Now we picked all of this, we saw Target one We saw Target two now when it didn’t hit target three the market was giving us a clear signal That the sellers weren’t strong enough to push the market down and we would have been out So we would have been out and with the trailing stopped. We would have locked in our profits When the market made new highs over here as the market make new highs over here We were waiting and patient and as I said in my last episode on Next potential move I say potentially because we don’t know was a higher level Well we have that higher low now this bar here today has taken out the top So therefore we are now in a long trade So those people who have fear in the markets saying they don’t know what’s going on, or the market is going to crash Or facing the wrong way currently now they could be correct the market could crash But the point is we follow the charts and we follow the patterns and the structure we don’t need to guess we don’t need to overthink this we just Follow what the market tells us and as it stands at the moment? With the higher high and a higher low the market is clearly saying it wants to go up So it’s declared itself now. Let’s talk about fear in the market fear arises from ignorance ignorance arises from not knowing what you are doing Fear compounds itself when when you refuse to accept you are wrong Okay, let’s examine these statements fear arises from ignorance so if you weren’t aware of patterns as I explained to you in episode 10 and Position in the market as I explained to you in episode 11 All before the events this is not hindsight information This is all before the events and I said to you look for a higher low after It’s formed a higher high So that shows us We are not in a position Where we’re ignorant we do know that we do know what we’re doing and we are prepared calm and in control The third point here is that fear compounds itself when you refuse to accept you are wrong Well in these markets those people who are going long probably did not have a stoploss It’s very common for traders not to have a stoploss to move their stop-Loss Alternatively they put their stop-loss so far away that they feel their pain So as they lose more and more money the fear compounds itself By not having any trading plan or any system This is what happens, and this is all based on ignorance and the only answer to that is trading education To know what’s going on in Advance And these youtube episodes on how I hope are providing you that with that type of information So just to confirm most traders and we’re talking about 90% of traders have no system. No process No reviews have anxiety to pull this the trigger Like to revenge trade meaning to say if they’ve had a heavy loss They want to get their money back, and they don’t use stop losses So these are all bad Practices as a trader and will guarantee you to lose money in the short to medium to long term And what we have here are four points. Which I hope will help you become professional trader the first point is Adapting to changing markets you have to understand that the market is a living breathing thing just like if you owned a Restaurant business or a corner shop or a it it business? Everything changes you can’t stay still Technology changes demands change and you have to adapt it’s the same way is that the market could be going down one day and The next day it could be racing upwards as a trader you must be flexible and go both ways Secondly you have to build on your strengths Successful traders have certain skills for example. They may be good at recognizing patterns Or they may be able to enter orders quickly By reversing their position or they may be able to look at things in a long-term Way rather than a short-term way You have to identify what your skills are and trade those timeframes? That suit your strengths So if you are quick at thinking you may be a day trader if you’re good at pattern recognition Or long-term views swing trading or positional trading may suit you Point three is cultivating creativity now the best way is to See things through different People’s eyes if you just look at it from your own perspective Then you’re only going to get a biased view So you have to educate yourself? with successful traders Do not join chat rooms. They are a waste of time those Boxes are a waste of time in my view and it is controversial CNBC is a waste of time you? Want to be with successful traders who can train you to the proper way to think and behave? point four Adopt best practices What you have to do is? Overcome all your bad weaknesses or your human frailties By having processes which will keep you in control that includes position sizing Stop losses specific entries and reasons for entries reasons for exits Trailing stops now I can teach you all of these things, but these are all best practices that you have to Adopt in order to be a successful trader and you learn that bit by bit so on the one side we have the logical skills such as Analysis and trade Management and now on the other side there is the psychological skills which you have to work on yourself and To be a successful trader you have to do both But I can tell you this for a fact your psychological side is the one which you need to do the most work on because that is going to be the one which is going to cause you losses and The way to do that is to analyze yourself when you see yourself doing something wrong pull yourself up Let’s talk about that We all have bad habits and until we recognize those bad habits for example we may like snacking on chocolates or crisps or something like that, but if we ignore it, we’ll continue to do so But if we say hey, you know what I’m have had too many chocolates this week I’m gonna have some I don’t of vegetables from Carrots or cauliflower or broccoli Instead of that borah chocolate then were recognized using that bad habit and we’re taking action to correct that bad habit So similarly in trading when we have a bad habit the first thing we need to do is recognize it The next thing we need to do is correct it now when we correct it what we need to do is develop a routine By repeating the routine of a good habit that bad habit changes to a good habit and we want to foster good habits and to Destroy the bad habits So in conclusion what I would say to you is do not ignore your human emotions Oh, it is part of your dnA so you cannot wipe it out, but what you can do is put mechanisms and Processes in place in your trading to be a successful trader So I hope you enjoyed this lesson today and learn something from it. Thank you for your time. Take care. Bye. Bye now you

9 thoughts on “CRYPTO TRADING: HOW TO CONTROL YOUR EMOTIONS When Trading Cryptocurrencies Episode# 12”

  1. Thanks for the video! I'm exactly that kind of noob you are describing – no stop losses etc. Got the lesson, thanks!

  2. Excited to hear more on right ways to execute stop loss strategies from a long term or swing trading perspective. Thumbs up!

  3. this is great i am big fan and looking foreword for your videos i had a q? what is the affect of btc forking into bcc and btc and some of the platform like bitfrex give you bcc for free like same MUCH you have in btc an Some are not like poloniex wHAT IS THE TECHNICAL AND SICLOGICAL ANALAYSIS OF THIS MOVE AND 1 ST AUGEST IS TOMORROW THANKS

  4. I 'm following your video's for the last 3 weeks I think (I should have doing this earlier, would be better for my wallet). And I try to keep my emotions under control and try not to do any stupid things like buying when it goes up and selling when is goes down. I cashed out btc on your target 3 at 3250€, put it temperaly  into ltc and eth. I was glad that for the first time in 2 weeks I closed the week positive. But know FOMO is growing. Right know even the normal media is talking about the rise off btc over 3700-4000€. Is btc back to a bulltrap, and should we wait?

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