The Professional Crypto Traders VS Amateurs
Let’s analyze what exactly makes Professional Crypto Traders perform so much better than amateurs. The psychological factor is as important as trading skills.
New traders emerge like mushrooms during the bull market after a rainy day. There are thousands of them populating the nethers of cyberspace, showing charts, technical analysis, and typical Crypto trading platform setups. Sometimes these new traders make a killing in the market. This creates a false impression that trading is easy, fun, and consistently profitable. Nothing can be further from the truth. We will discuss what makes a professional trader so much different from an amateur and what common pitfalls new traders make. Knowing this is vitally important when you’re contemplating diving into crypto. Do you interested in this kind of Blockchain news? Stay with Tycoon insights to the end of this article.
Mastering emotions on professional crypto traders
Most people who get bitten by the crypto bug get highly excited at the prospect of easy gains and the ever-rising market. We get all “fired up” and want to jump in the water with nothing more than a naked ass and zero experience. What usually happens is that we become overly confident, reckless, and arrogant. This inevitably leads us to huge losses down the road.
On the other hand, Professional Crypto Traders know that the market is a massive invisible power that can either help your small trading ship float to new heights or completely swallow you to the bottom of the red ocean. It’s all a matter of perspective. This is why keeping an open mind is crucial to your success.
Amateurs think that the “market owes them their profits.” Professionals know that the market doesn’t owe them anything. The market is just the market. It’s a living, breathing entity that will be here long after we have exited our positions and even after we die. The market will always be here because it’s a part of human nature.
A new trader can make the most dangerous mistake by becoming successful too fast. Emotions, arrogance, and false confidence take over and cloud logic and reason.
In trading, we have to manage risks and probabilities. Professional Crypto Traders lock up their emotions into a mental “safety deposit box” and focus on the actual data; price action, market sentiment, patterns, technical analysis, indicators, and much more. They don’t care how the market makes them feel. If you remember one thing from this article, remember this:
The market doesn’t owe you anything
Amateur traders usually understand this simple fact after they have exposed themselves to an unnecessary amount of risk due to their recklessness and overconfidence. They make many expensive mistakes. But not you. You now know that the market doesn’t owe you anything, right? So don’t expect it to make you rich overnight. That’s not how it all works. The longer an emotionless trader remains in the market, the wiser they become. Now let’s take a look at strategy.
What is the power of strategy?
Now you rid yourself of any emotions and can objectively look at the market, let’s analyze another significant part that makes a professional trader consistently profitable.
ANY strategy that a trader uses ( might it be a simple rule ) will consistently outperform the amateur traders who “follow their gut feeling.”
Katie has been in the crypto market for 4 years now. She already keeps her emotions in check and always keeps an open mind when venturing into the endless ocean of the market. Yes, she experiences occasional setbacks, but her consistent performance is good overall. Why exactly? Simply because she follows a set of straightforward rules that consistently help her overcome any mental hesitations:
- She has a HODL position of coins that makes up 80% of her total crypto assets. Only 20% is used for trading. Her rule is: she never touches her HODL position whenever she makes a losing trade. Ever! On the other hand, the profits from her businesses are used to grow her HODL part even more significant.
- She only trades the spot market. Her second rule is: She never uses leverage.
- She cuts losses at just 3%. She never “hopes” that a losing trade will recover. If she sees a loss, her stop-loss is already set up to ensure she sticks to her percentage and doesn’t slide more profound into the red.
- She never sells 100% of her open position. If her trade is profitable, she takes out her initial capital and leaves a tiny “moon bag” in the market. Now she has more than 140 different altcoins spread across five exchanges while having her initial money constantly working in new trades.
How much do you need to enter this market?
New traders can be overwhelmed by all the market’s possibilities. We tend to cling to hope that the “price will keep rising” or that our “losing trade will recover.” Professional Crypto Traders will have none of that!
They live by simple but stringent rules that they follow religiously. If Katie’s open trade (100 USD ) nets her a 45% profit, she will not “hope” that the Crypto price and analysis will rise even further. Instead, she will use her rule and do the following:
- Take out her initial capital (100 USD)
- Bag a small profit (10 USD)
- Leave a “moon bag” (of 35 USD) in the market after taking out 100% of her initial money.
Always remember that a strategy ( even the most simple one ) is what makes a trader a “Pro.” They know how deceptive the market can be, and they never “hope” for the desired outcome. How does a trader make these rules, though? Everything comes with experience.
How skills are formed by the time
If someone wanted to become a skilled carpenter in the good old days, they had to follow an apprenticeship program and learn from the best carpenters in town.
This apprenticeship took many years, damaged fingers, frustration, even tears to complete. Why do you think trading is different? You see, it’s not the amount of money you earn through trading that makes all the difference. It’s time you spend in the market, absorbing all the wisdom like a sponge.
Amateur traders don’t even read books about trading, let alone follow an apprenticeship program looking over the shoulder of a professional trader. This mental laziness results in financial losses every damn time. Ask an amateur about the Wyckoff distribution or who Jesse Livermore was, and you’ll immediately understand this point.
Professional Crypto Traders also make losses
But they know that becoming consistently profitable only comes with time. They actually “expect” occasional failures, and they welcome them as nothing more than an opportunity to learn further and develop their skills. They live and breathe “trading” and don’t let themselves get discouraged by occasional setbacks. Every mistake becomes a learning opportunity that will eventually result in a rule that the trader will follow to avoid this same mistake.
The people who want to trade but simply have no time to follow extended apprenticeship programs are more than welcome to register at Tycoon.io and profit from the wisdom and strategy of Professional Crypto Traders. The direct API connection allows anyone to follow (in real-time) any professional trader they choose and immediately copy their approach. The funds always remain in the custody of the follower and can never be accessed by the Tycoon. This is something non-negotiable.
Tycoon Insights allows people from all walks of life to have access and exposure to the fantastic crypto community. People are welcome to learn and develop their social trading skills while already BEING in the market. Now let’s see another often overlooked personal trait of Professional Crypto Traders that amateurs always tend to forget.
The positive expectation in professional crypto traders
A professional trader always expects to be successful and profitable. But why? It all comes down to our relationship with money and its use.
The chances are big that the expression “Money is the root of all evil” is not foreign to you. Our parents usually don’t teach us enough about money. Schools fail at this task abysmally. How could they succeed when the teachers are underpaid and often only seek the teaching profession due to job security and the promise of a comfortable pension.
When we graduate school, the chances are high that we negatively view money. It takes years to reprogram ourselves from this misconception.
On the other hand, Professional Crypto Traders see money for what it is: It’s just a tool and a part of an enjoyable game. Money is not an object of fear, desire, or stress. It’s just money. Professional Crypto Traders don’t measure their success in dollars, euro, or yuan. Trading is just a fun game, and every single day presents an opportunity to learn something new and insightful. The more they play it, the more they expect to win. Perhaps that mythical law of attractions works well in this case.
Start the change with small steps
The chances are big that you have an emotional attachment to money. We all do to a certain extent. The realization that money is just a tool brings instant clarity into our rigidly programmed brain. The endless brainwashing by parents, school teachers, and television instantly melts down into the ether. For Professional Crypto Traders, money is like a hammer drill, screwdriver, scalpel, or frying pan. It’s just a tool for achieving a specific outcome. Might it be more free time to spend with family, a new car, vacation, or a new coffee maker? Whatever it may be, money is simply a tool and not an object of desire.
Knowing this, Professional Crypto Traders avoid any emotional attachment to money. They are here for the game. They expect to win. And their time in the market, experience, and tenacity dramatically increase their chances. They are not professionals because they want to earn a ton of money. They are professionals because they love the game of trading.
Yes, the market will slap you around a few times. Your balance will get beaten and bruised now and again. But the more time you spend learning, growing, and developing, the more consistently successful you will become. Having simple rules and strategies will help tremendously, but in the end, it’s all about our ability to back into this fantastic game after any setback that the wild force of the market can sling in our faces. We are here for the game, so let’s win.
Risk note about professional crypto traders:
Trading Cryptocurrencies is subject to high risks and may result in capital loss. Please make sure you fully understand the risks associated with trading Cryptocurrencies and only invest as much as you can afford to lose. Be clear about your investment objectives and experience, and seek advice from an independent financial advisor if necessary. It is your responsibility to determine whether you have permission to use Tycoon Trading Platform s’ services under the laws of your country of residence. Investments in Cryptocurrencies have no protection by any Financial Services Compensation Scheme.