1 Year Recap - Here's Why People Lose Consistently

What's up guys,

I left my full-time career last year around February and have been actively living off of trading ever since. Let me preface this: I got lucky. Insanely lucky. When I first started trading, I was making $80-$100 a day. It was enough to take care of gas, groceries, and some of my bills. I learned when losing 10% on a trade only meant $100, not $1000+. I was lucky to be able to learn how to trade the crypto market when tuition was cheap. I run a public group called MISC Capital and found myself saying the same things over and over, so I figured I'd post them here to try and help others out.

1) You HODL. HODLing is a meme. Let it die there. Unless you are in @ ICO (or near) price in a large scale coin, there is no reason to be HODLing any alt coin during a bear market. Your pride is absolutely killing your chances of turning this into a life changing opportunity. Let me show you what HODLing the top 9 coins (not including BTC because most use it as the default trading pair) has given you over the last 3 months:

$ETH -36% $XRP -64% $BCH -67% $LTC -57% $ADA -69% $NEO -46% $XLM -61% $EOS -59% $IOTA -76%

Stop HODLing. This isn't even a "but no one can time the market" question. The charts clearly show a bear market - sell. And wait. Be patient. Buy back in at a 50% reduction of price. Please. You could have sold at the end of January. Or the end of February. Hope and pride kill.

2) You don't understand (or possibly aren't even aware of) the importance of market cap. Pay attention to market cap, bitcoin dominance, and alt coin dominance. Every morning I open up CoinMarketCap and check all 3 of those things. Here is my reason why: market cap is sitting at near $320 billion right now. If I open it tomorrow and see that the market cap has increased, I know that new money is flowing into the market. Next, I want to know where that new money is flowing, so I check bitcoin's dominance. If market cap is INCREASING, and bitcoin dominance is INCREASING, I can accurately predict that the price of bitcoin is going to be rising. If market cap is INCREASING, and bitcoin dominance is DECREASING, I can go check the alt market and find where the biggest gainers are going to be. When the alt market pumps, most coins pump in unison. Want some extra %? Sort by biggest losers, find an acceptable entry point and buy in. If the alt market is going up, those biggest losers will sometimes out perform coins that haven't decreased as much. Make this a habit to check every single time you sit down.

3) You can't define your style. Stop changing your trading system every other day because it doesn't fit what you want to do. Find a system that works with your personality - some like to trade with leverage, some like to trade trends, some like to position trade, some like to buy panic sells, etc. Every single system is tailor made for those specific scenarios and very rarely are you going to find an experienced leverage Bitmex trader trading trading week long trends. Pick what kind of trading appeals to you and stick with it. Improve your system, get used to the charts and indicators (if you use any) and get into a rhythm. This market is not impossible to trade, it's just different. Fine tune your game.

4) Overtrading is probably killing your account. You don't need to be in every single trade on every single exchange. You should miss out on trades. Do your research, find trades that fit your system's criteria and enter the trades that give you the highest probability to win. Do not FOMO into ANYTHING. If you find yourself FOMO'ing into trades, get off Twitter, Discord, Slack, anything that you're using to see other people shilling their buys. You are pissing away BTC - something that will be worth exponentially more in a year. Would you rather make 1 high probability trade every few days worth 20% or trade 5+ times a day and run the risk of losing 5% every trade? Stop throwing your BTC down the drain.

5) You lack PATIENCE. Please, be patient. The crypto market runs at video game speed. Stop getting lost in the noise. Remember that every time you win, someone else is losing. Be patient, be calculated, and take every single persons money that's willingly giving it to you. You are the best trader you know. Repeat that over and over.

That about sums it up. 5 tips that I wish I had gotten around a year ago.

edit: Grammar. edit(2): Thanks for the love Reddit :)! I knew this would go over poorly with the overall sentiment of this sub. I hope the few of you that don't live in an annoyingly FUD'd echo chamber take something new from what I've said. Remember, although I'm not an investor in anything other than BTC/ETH, there is something said about going against the grain. Feel free to reach out if you have any questions!

submitted by /u/ruskism
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