Mindset is a set of thoughts and beliefs from which actions lead to results, and results are reflections of thinking.
Some people may think crypto is gambling, zero-sum gaming, finance, technology, the future, or simply an investment channel that is life-changing for them.
No one is right or wrong, the way you think, the results you will get.
Following are 5 tips to have the mindset of successful traders:
Understand what you invest
It is being said that the crypto market is like a roller coaster. You just heard that Bitcoin crashed 10%, it immediately recovered and increased by 20% in the next few days.
How can you safely invest and overcome volatility in the market? There is only one way: you have to really “understand” what you are investing in.
If you don’t fully understand the value of an asset, no matter how much it increases, you should not buy it. Since when the price drops a little, you will panic and sell it immediately.
For new traders, you should choose from the top 5 cryptocurrencies with the highest market cap. Since you are an inexperienced trader, you want to instantly make a lot of money. In that case, you’d better calm down to control your greed and try to ask yourself: “If everyone wins, who is the loser? “
The first time I joined the market, I often went to the forums to learn from others’ experiences. The advice from some seniors was trading from your gut. However, it does not always work, and I ended up losing money.
Only then did I realize that I needed to gain knowledge and find the best traders and listen to them to make profits.
In the digital age now, you can learn all the basics on Google and YouTube then practice them. You can only listen to shares from experienced traders to reduce the risk investment but not as detailed guides.
Don’t listen to those who boast their trading orders with the profit of thousands of dollars and buy their training courses. Only when you really engage in it will you find your mentor.
No matter how much profit you make in the market, the most important thing is not to lose your fund. Losing the fund is losing everything because any investment requires a fund.
You should only invest your unused money and not borrow from others. Or else you will have to pay off debts. Investment loans are only for professional investors.
Learn how to allocate capital properly, do not foolishly invest all the savings you have in a project that you do not really understand, or based on the commitment of ten percent profit per month.
There are various chances for you to make a profit. So, it would help if you focused on gaining knowledge, skills, and a clear mindset before joining the market.
Stand out from the crowd
Traders are often affected by the news and are FOMO investing in something, but the market has a paradox: the crowd usually never wins. They are always the prey.
There are often few rumors about a certain cryptocurrency in the market that has potential for high growth in the future. You may be affected by buying and selling and start to make wrong decisions to buy it.
It’d be better to make your investment decisions independently, based on thorough analysis and advice from experts or experienced traders.
There is no perfect investment method
If you decide to invest in the market, make sure you have a solid investment strategy and method.
You have to be clear that there is no strategy that is 100% accurate in reality.
From my experience, after you have practiced an investment strategy for 6-12 months and have a success rate of 60% or more, it is suitable for real investment in the market. You just have to follow those rules.
Over time, you can apply those learned experiences to your investment system to increase your success rate.