95% Of All Traders Fail Including You Because Of This Reason! This Is How You Get To The 5%!
Dear soldiers on the web! My name is Sem and I am here today to bring you some knowledge about whatever I think is important for you guys to know! It's a fact that ever since Bitcoin went mainstream in 2017 a whole bunch of people has started as retail traders making money behind their desk. However, some of you may have noticed that it's a little more difficult than expected.
I am going to cover the following topics:
- What is trading?
- Difference between the 95% and the 5%
- The great beginner strategy that always works if you stick to it!
So now we have covered up everything it's about time we jump right into what you came for!
Trading explained in my own words would be to buy or sell an asset, currency pair, stock, future, option etc with the expectation to be able to sell it with a nice return/profit. That wasn't so hard right? However, trying to make a profit in a practical way is a little bit more difficult. In a previous article, I wrote a while ago I had also been writing about different styles of trading such as day trading, swing trading, momentum trading, trend trading etc. Yet with all these different styles of trading, it's important you find your own way of trading that fits you and that makes you feel comfortable.
Now let us visualize something in order for you to understand why it is that 95% fails and 5% succeeds. How many people know Steve Jobs? probably everyone right and we all know what he is famous for. Now do we all know Bill Gates, I assume yes right? Oke now who has ever heard of Arnold Schwarzenegger... of course you have heard of him he is the terminator dude!
Now I hear you thinking "where is he going with this". They have all reached a point in life where they went from unknown individual to a world known legacy. But what we forget is... I just named 3 people out of a 1.000.000.000 that have tried the same, we just don't hear about them. Just like a trader who shows all the profit he makes without showing the bad trades. The fact is that the majority of the traders isn't capable of trading with a system, the majority of the traders isn't able to control their emotions, the majority of the traders has the quick rich mentality, the majority of the traders has a lack of patience, the majority of the traders has a lack of focus, the majority of the traders has a lack of motivation and concentration. The majority of traders perfectly reflect how we, like sheep, imitate each other in everything. And why only a small group of wolfs lead the group. People are ignorant.
Now in order for you to become one of the 5% it's important that you put yourself in the right conditions to become a good trader. A bacteria will only grow if you give him the exact things he needs to create a huge colony which is water, food and the right temperature. If any of those factors is missing it will stagnate its growth.
The same goes for becoming better at something. So here I have the best tips I can give you to become a better trader.
- Trade with money you can lose. This is one of the best tips I can give you and probably also one of the most given tips in the trading world. To many traders trade with a to big position size which gives them a scared and anxious feeling when they are in a trade. This indicates that people are trading with money they can't afford to lose and is a signal you should trade with less money. I trade with max €3 loss and €6+ profit.
- Trade 50/50. This means you are allowed to lose 50% of your trades. Let's say you trade 6 times a week and have the rule you do not trade with a higher loss than €3 and a max profit around €6. If you lose 3 times €3 you have lost €9. And when you won 3 times €6 it means you won €18. At the end of the week, you simply take off the losses of your profit and still have a total profit of €9. And the cool part about this strategy is that the better you get the more you can scale up. Imagine when you become a lot better and you can trade €30 loss and €60 win. That means you end the week with €90 profit. That means when you stick to this system every week you earn up to €360 per month.
- Make a database for all your trades you have made and analyze what you have done. Every single trader in this world makes good and bad trades and no shit because we are constantly playing against much better traders. Analyze what you did well and what you did wrong. This really helps you in your longterm success as a trader.
- Work on the above-mentioned skills such as; systemic thinking, intrinsic motivation, positive thinking, patience, focus, concentration, emotion etc.
If trading was easy 95% of the people would be successful and only 5% would fail. Trading should be your passion in order to become good at it. If it's not quite your think it might be good to reconsider whether you really want to become a trader.
My name is Sem Kemperman and I wish you all the best profits!
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succesful trading is risk management. Work and trading don't really mix either its a full time job. Dont make a move for the sake of making a move thats called gambling. Make moves when you know there is an opportunity in front of you. You will know when those times arise if your smart and patient enough. You make money out of other peoples mistakes.
That is very nice additional information :)! Well said
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