Trading Hierarchy: What Really Matters in Trading

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Hello traders, these past few weeks have been incredibly profitable for many traders (and many losses as well)! Here I would like to show you an investor philosophy that I always trade by when approaching the market. Many people approach technical analysis thinking it's the first and foremost thing they must learn, which in reality, should be the last. It's crucial to first understand that trading psychology and risk management is the MOST important factor when trading within the market. Even if you have strong technical analysis (which can never be perfect), you can lose if you have BAD risk management. You can lose even more if you are no patient enough and trade EMOTIONALLY.

The sad reality is, many professionals who have traded for years, still have yet to realize this. I hope this small educational post shines light onto advanced and beginner traders. Everyday, I am witnessing traders who are making money not knowing why, or losing money not knowing why. One thing that I always like to advocate is that it's better to know why you lost a trade, rather than not knowing why you made money in a good trade. These are realistic expectations of the market, there is no simple magic pill in technical analysis .

Trade Safe.
X Force


I disagree with this. Patience and management of emotions are certainly necessary for trading well, but they are by no means sufficient. You can have the perfect mindset, but if you do not have a good strategy, you will not make money. It is preferable that this strategy be quantitative in nature, and that it be rigorously backtested before being put into practice.
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Wonderful, you caught the essence of trading !!!!!
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@aristide you caught the essence of a kind hearted person. I highly appreciate it!
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Much appreciated advice. Im starting to realize why you concentrate on leveraging btc...less trades, but higher quality trades. Like most rookies I tended to overtrade, but XForce's guidance is increasing the quality of my trades. Cheers.
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@R0llins_, Thank you so much for saying that, I really appreciate it. I believe that it's important to understand the overall market from a 'market psychology' perspective, as it gives traders a better understanding of how to trade Bitcoin. I believe Bitcoin will be one of the remaining store of value cryptocurrency assets in terms of maturity! I hope these posts help you! Thank you and trade safe, buddy!
Thank you for sharing this... I recently got emotional and revenge traded an alt position and got rekt and now it's caused me to miss a nice run up on ETH and BTC.

Just reminding myself even its not timing the market, its time in the market.
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this is just perfect.. I am beginner.. just perfect
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Great posts, @XForceGlobal, thank you! Could you, please, elaborate on 'Correlation Management' in some of your future posts?
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Spot on! Over the years, I have continuously revised MY "trading rules" and with the more experience I gain (I've been trading for almost 20 years now) the less it is about the how and more about the mindset to trading - my "personal" Trading Rule #1 of Trading is "Rule #1 - Don't freak yourself out" - "Rule #2 - Remember Rule #1 - and... it takes what it takes - just go with it!" - I also love the quote by Denise Shull that touches on a similar theme to your graphic in this post - the quote is "Maybe we just need to learn to operate the machinery of our minds via a whole new user's manual?" (Quote from "Market Mind Games") - Thanks for posting this! Well said! :D
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Nice work!!! Thank you!
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